Suppose That It Is Believed That Investor Returns on Equity

question 50

Multiple Choice

Suppose that it is believed that investor returns on equity investments at a particular brokerage house are normally distributed with a mean of 9 percent and a standard deviation equal to 3.2 percent. What percent of investors at this brokerage house earned at least 5 percent?

• A) 89.44 percent
• B) 10.56 percent
• C) 39.44 percent
• D) 100 percent

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Definitions:

Escrow Account

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Profit Sharing Plan

A compensation structure where employees receive a share of the company's profits, usually allocated as part of their annual income.

Scanlon

A participative management approach that focuses on employee involvement in problem solving and decision making related to productivity improvement and cost reduction.

Rucker Plans

A profit-sharing plan where employee pay is linked to the productivity or profitability of a company, encouraging increased worker output and company success.