Suppose That the Returns on an Investment Are Normally Distributed

question 59

Multiple Choice

Suppose that the returns on an investment are normally distributed with an expected return of 16% and standard deviation of 3%.What is the likelihood of receiving a return that is equal to or less than 19%? (Hint: the area under a curve for 1 std dev is 34.13%,2 std dev is 47.73% and 3 std dev is 49.87%. )

• A)97.73%
• B)84.13%
• C)15.87%
• D)2.27%

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Definitions:

Self-Efficacy Beliefs

The confidence an individual has in their ability to execute behaviors necessary to produce specific performance attainments.

Core Self-Evaluations

A personality trait which encompasses an individual’s subconscious, fundamental assessment about themselves, their abilities, and their control over their environment.

Proactive Personality

Characterizes individuals who are naturally inclined to take initiative and effect change in their environments rather than merely reacting to circumstances.

Self-Regulation

The ability of individuals to manage their own thoughts, feelings, and behaviors to achieve long-term goals.