A Return Series Has an Arithmetic Mean of 10

question 37

Multiple Choice

A return series has an arithmetic mean of 10.5% and standard deviation of 13%.Assuming the returns are normally distributed what is the range of returns that an investor would expect to receive 95% of the time?

• A) 10.5% to 13%
• B) -2.5% to 23.5%
• C) -28.5% to 49.5%
• D) -15.5% to 36.5%
• E) 0% to 36.5%

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Definitions:

Secured

A status indicating that a loan or credit has collateral attached to it, ensuring the lender's investment is protected.

Separate Legal Entity

The principle that a corporation exists separately from the people who created it.

Unanimous Shareholders' Agreement

An agreement among all shareholders of a corporation, often detailing the management, control, and direction of the corporation's affairs.

No Restrictions

A condition or status where there are no limitations, constraints, or regulations imposed on actions or activities.