For Normal Distribution, What Percentage of the Data Will Fall

question 15

Multiple Choice

For normal distribution, what percentage of the data will fall in the interval of one standard deviation above and below the mean?

• A)50%
• B)65%
• C)68%
• D)95%

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Definitions:

Expected Return

The forecasted amount of profit or loss an investment is likely to generate over a given period.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market.

SML

The Security Market Line, a graphical representation of the Capital Asset Pricing Model (CAPM) showing the relationship between the expected return of a security and its risk.

CML

The Capital Market Line, representing the risk-return trade-off of efficient portfolios in the capital market theory; it shows the highest return possible for any given level of risk.