SCENARIO 6-6 According to Investment Digest,the Arithmetic Mean of the Annual Return

question 48

Short Answer

SCENARIO 6-6
According to Investment Digest,the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned.Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%.The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric.Assume that this distribution is normal with the mean given above.Answer the following questions without the help of a calculator,statistical software or statistical table.
-Referring to Scenario 6-6,find the probability that the annual return of a random year will be more than 7.5%.

Comprehend the limitations and capabilities of Venn diagrams in depicting logical relationships.

Identify equivalent propositions through the analysis of Venn diagrams.

Examine the impacts of categorical proposition variations on Venn diagram representations.

Understand the safety concerns associated with motor control circuits.

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