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SCENARIO 6-5
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 6-5, find the two values that will bound the middle 50% of the annual
returns?
Trademarks
Symbols, names, phrases, logos, or combinations thereof, legally registered or established by use as representing a company or product.
Goodwill
An intangible asset that arises when a company acquires another business for more than the fair value of its net assets, representing the value of the brand, customer base, and other non-physical assets.
Research And Development
Activities related to the innovation and improvement of products and processes.
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