SCENARIO 6-5 According to Investment Digest, the Arithmetic Mean of the Annual

question 87

Short Answer

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, 10% of the annual returns will be at least what amount?

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Definitions:

Marketing Mix

A set of actions, or tactics, that a company uses to promote its brand or product in the market, traditionally defined as the 4Ps: Product, Price, Place, and Promotion.

Place

In marketing, refers to the distribution aspect and how and where products are made available to consumers.

Outlets

Retail stores that sell goods directly from manufacturers at discounted prices, often merchandise that is overstocked or discontinued.

Transportation

The movement of goods or people from one location to another through various modes including road, rail, air, and sea.