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

question 28

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 between 7.5% and 11%.

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MPAA

The Motion Picture Association of America, an organization that represents the interests of major Hollywood studios and provides movie ratings.

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The collective organization of workers in various trades and professions, including those in the entertainment industry, aimed at negotiating for better working conditions, wages, and rights.

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A directive issued by the highest court in a country, which must be followed by lower courts and individuals.

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