Over a Number of Years, the Average Annual Rate of Return

question 79

Multiple Choice

Over a number of years, the average annual rate of return for Fidelity's Capital Appreciation mutual fund has been .17 with a standard deviation of .35.Assume annual returns are approximately normally distributed around the average rate.Using this historical information as the basis for the calculation, there is a 20% probability that this fund will have a return greater than or equal to how much?

• A)-.124
• B).198
• C).464
• D).3732
• E)-.293

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Definitions:

Foot-In-The-Door Phenomenon

A compliance tactic that involves getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Beliefs

The conviction or acceptance that something exists or is true, especially one without proof.

Feelings

Subjective experiences of emotions, typically described through words such as happy, sad, angry, or afraid.

Personal Dispositions

Inherent personality traits and tendencies that influence behavior and perspectives.