SCENARIO 6-6 According to Investment Digest,the Arithmetic Mean of the Annual Return

question 176

Short Answer

SCENARIO 6-6
According to Investment Digest,the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned.Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%.The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric.Assume that this distribution is normal with the mean given above.Answer the following questions without the help of a calculator,statistical software or statistical table.
-Referring to Scenario 6-6,find the probability that the annual return of a random year will be less than 11.5%.

---

Definitions:

Immigration Waves

Periods when large numbers of people migrate from one country to another, which can have significant cultural, economic, and social effects on the sending and receiving countries.

Dominant Culture

The prevailing cultural norms, values, and practices of the majority group within a society that influence its social institutions and power structures.

Presenting Problems

are the initial concerns or issues brought forth by an individual seeking help or therapy.

Jewish Client

Reference to a client who identifies with or practices Judaism, emphasizing the importance of considering cultural and religious contexts in therapeutic or service-oriented settings.