I for a Normal Probability Distribution, About 95 Percent of the Area

question 103

Multiple Choice

i. For a normal probability distribution, about 95 percent of the area under normal curve is within plus and minus two standard deviations of the mean and practically all (99.73 percent) of the area under the normal curve is within three standard deviations of the mean.
Ii) The total area under the normal curve is 100%.
Iii) The mean of a normal probability distribution is 500 and the standard deviation is 10. About 95 percent of the observations lie between 480 and 520.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (i) and, (ii) are correct statements but not (iii).
• E) All statements are false

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Definitions:

Portfolio's Beta

A measurement that indicates the volatility, or systematic risk, of a portfolio relative to the overall market.

S&P500 Value

The numerical value representing the collective performance of the 500 largest companies listed on stock exchanges in the United States, as measured by the Standard & Poor's index.

Portfolio Value

The total market value of all the investments held by an individual or institutional investor.

S&P E-Mini Futures

Futures contracts that represent a portion of the standard S&P futures contracts, allowing for investment in the S&P 500 with less capital.