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

question 32

Multiple Choice

Over a number of years, the average annual rate of return for Fidelity's Contra mutual fund has been .11 with a standard deviation of .23.Assume annual returns are approximately normally distributed around the average rate.Using this historical information as the basis for the calculations, there is a 50% probability that this fund will have a rate of return between .05 and what value.

• A).402
• B).358
• C).290
• D).382
• E).394

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