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:

Actual Costs

The genuine and overall expenses incurred for materials, labor, and overhead in producing a product or providing a service.

Standard Costs

Standard costs refer to the predetermined costs associated with manufacturing a product or providing a service, serving as a benchmark for assessing performance.

Shared Service Units

Internal service providers within an organization that offer their services to various departments, aiming to improve efficiency and reduce costs by centralizing support functions.

Centralised Service Units

Departments or groups within an organization that provide essential services or support to other parts of the organization from a single, centralized location.