$X$ Is a Normally Distributed Random Variable with a Mean of of 10

question 66

Multiple Choice

$X$ is a normally distributed random variable with a mean of 10 and a standard deviation of $4.0$ . Find the value of $X$ for which $70.54 \%$ of the area under the distribution curve lies right of it. (Note: the diagram is not necessarily to scale.)

• A) 8.92
• B) 7.84
• C) 11.89
• D) 8.56

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Definitions:

Expected Growth Rate

The predicted percentage increase in the value of an investment, asset, or economy over a certain period of time.

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Market Capitalization Rate

The expected rate of return on a portfolio consisting of all publicly traded stocks, used as a measure to value a company's stocks based on the market’s expectations of its future earnings.

Earnings Retention Ratio

A financial metric indicating the percentage of a company's net earnings that is not paid out as dividends, but instead retained for reinvestment.