SCENARIO 6-4 According to Investment Digest, the Arithmetic Mean of the Annual

question 99

Short Answer

SCENARIO 6-4
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 6-4, 10% of the annual returns will be less than what amount?

---

Definitions:

Ineffective Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, leading to adverse outcomes or inability to deal with situations.

Anxiety

A psychological disorder identified by powerful feelings of unease, worry, or terror that substantially hinder daily life activities.

Mental Health Referral

The process of directing a patient to appropriate psychiatric or psychological services for further evaluation and treatment.

Feeling Alone

A subjective sensation of isolation or detachment from others, regardless of whether one is physically alone.