A Data Set Has a Mean of 50 and a Standard

question 6

Multiple Choice

A data set has a mean of 50 and a standard deviation of 10. Which of the following might possibly be true?

• A) More than 90% of the data values are between 20 and 80.
• B) No more than 50% of the data values are between 30 and 70.
• C) No less than 30% of the data values are less than 30 or greater than 70.
• D) At least 15% of the data values are less than 20 or greater than 80.

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Definitions:

Optimal Risky Portfolio

A portfolio construction that maximizes expected return for a given level of risk, based on modern portfolio theory.

Risk Free Rate

The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk associated with a particular investment.

Systematic Risk

The underlying threat to the entire market or a specific market sector that cannot be alleviated by spreading out investments.