Suppose That the Returns on an Investment Are Normally Distributed

question 14

Multiple Choice

Suppose that the returns on an investment are normally distributed with an expected return of 10% and standard deviation of 5%.What is the likelihood of making a positive return? (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)84.13%
• B)2.27%
• C)97.73%
• D)15.87%

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Definitions:

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A French engineer and a key figure in the development of classical management theory, known for his 14 principles of management.

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describes the power or right given to individuals or entities to make decisions, issue orders, and enforce obedience.

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