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

question 156

Short Answer

TABLE 6-6
According to Investment Digest, the arithmetic mean of the annual return for common stocks from 1926-2010 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 Table 6-6, find the probability that the annual return of a random year will be more than 11.5%.

Describe the process of engaging critical thinking through questioning.

Clarify misconceptions about the methodology of critical thinking.

Identify and explain critical thinking skills, including interpretation, and associated subskills.

Differentiate between dispositions toward critical thinking through practical examples.

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Definitions:

Nasal Conchae

Curved bony structures in the nasal cavity that help to moisten, warm, and filter the air we breathe.

Soft Palate

The mobile, fleshy part at the back of the roof of the mouth that separates the oral cavity from the nasopharynx during swallowing and speech.

Nasal Septum

The cartilage and bone wall that divides the nasal cavity into two nostrils.

Nasal Conchae

Structures within the nose that increase its surface area to enhance air humidification and cleaning before the air reaches the lungs.