A Return Series Has an Arithmetic Mean of 12

question 34

Multiple Choice

A return series has an arithmetic mean of 12.8% and standard deviation of 7.8%.Assuming the returns are normally distributed what is the range of returns that an investor would expect to receive 90% of the time?

• A) 12.8% to 20.6%
• B) -10.6% to 36.2%
• C) -2.8% to 28.4%
• D) -12.8% to 20.6%
• E) 10.6% to 36.2%

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Definitions:

Value Chain Management

The process of organizing all activities involved in creating and delivering a product or service to maximize value and competitive advantage.

Input-through-output Process

A method or procedure in which inputs are transformed into outputs through a series of steps or activities, often in a production or operational context.

Inventory Control

The supervision of supply, storage, and accessibility of items to ensure an adequate supply without excessive oversupply.

Economic Order Quantity

A formula used in supply chain management to determine the optimal order size that minimizes the sum of ordering and holding costs.