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

question 55

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, find the probability that the annual return of a random year will be more than 11.5%.

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Definitions:

Modes of Interacting

The various ways in which individuals communicate and engage with each other, including verbal, non-verbal, and digital methods.

Attribution

The process of explaining the causes of behavior or events, often attributing them to internal dispositions or external situations.

Selective Perception

The tendency to perceive or focus on information that confirms one's preconceptions or beliefs while ignoring contradictory evidence.

Stereotyping

The act of generalizing characteristics, attributes, and behaviors to all members of a particular group without considering individual differences.