You've Recently Learned of a Mutual Fund Offering a Mean

question 77

Multiple Choice

You've recently learned of a mutual fund offering a mean return of 12% and a standard deviation of 8%. In any given year, there is about a 95% chance that this fund's annual return falls within

• A) −12% and 36%.
• B) −4% and 28%.
• C) 4% and 20%.
• D) There is not enough information to answer this question.

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Definitions:

Standard of Measurement

A set of criteria or benchmarks used to assess the performance or quality of a product, service, or activity.

Metric

A standard measurement used to quantify and evaluate the effectiveness, performance, or success of an activity or process.

Objectives

Specific, measurable goals or targets designed to direct actions and measure progress towards achieving a broader aim or strategy.

Key Performance Indicators

Quantifiable measures used to gauge the performance of a company, project, or campaign against predefined objectives.