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Suppose You Are Told That the Average Return on Investment

question 36

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Suppose you are told that the average return on investment for a particular class of investments was 7.8% with a standard deviation of 2.3.Furthermore,the histogram of the distribution of returns is approximately bell-shaped.We would expect that 95 percent of all of these investments had a return between what two values?


Definitions:

Healthy Personality

A state of mental well-being where an individual realizes their own abilities, can cope with normal stresses of life, work productively, and is able to make contributions to their community.

Carl Rogers

A pioneering humanistic psychologist known for his theory of personality and his method of client-centered therapy.

Reality Principle

A psychoanalytic concept suggesting that the ego seeks to satisfy the id’s desires in realistic and socially appropriate ways, taking into account the external world.

Pleasure Principle

In psychoanalytic theory, the instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.

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