A Mutual Fund's Average Annual Return Is 8% and Its

question 47

Multiple Choice

A mutual fund's average annual return is 8% and its standard deviation is 8%. An investor would expect 95% of the fund's returns to fall within what range?

• A) Between 0% and 8%.
• B) Between 0% and 16%.
• C) Between −16% and 32%.
• D) Between −8% and 24%.

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Definitions:

Pencils

Simple writing instruments consisting of a graphite core encased in a wooden or plastic barrel used for writing or drawing.

CPM/PERT

A project management tool that combines the critical path method and the program evaluation and review technique.

Scheduling

the process of arranging, controlling, and optimizing work and workloads in a project or system.

Management

The process of planning, organizing, directing, and controlling resources to achieve specific goals.