A Return Series Has an Arithmetic Mean of 12

question 42

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 95% 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:

Efficient

Describes a process or system that achieves maximum productivity with minimum wasted effort or expense.

Economy

The system of production, distribution, and consumption of goods and services within a particular geographical area.

ATC Curve

Represents the Average Total Cost curve, showing the per-unit cost of production at different levels of output.

Efficient

Pertaining to a process or system that achieves maximum productivity with minimal wasted effort or expense.