A Return Series Has an Arithmetic Mean of 10

question 37

Multiple Choice

A return series has an arithmetic mean of 10.5% and standard deviation of 13%.Assuming the returns are normally distributed what is the range of returns that an investor would expect to receive 95% of the time?

• A) 10.5% to 13%
• B) -2.5% to 23.5%
• C) -28.5% to 49.5%
• D) -15.5% to 36.5%
• E) 0% to 36.5%

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Definitions:

Oxidation

Loss of one or more electrons from a molecule.

Dehydration Reaction

A chemical reaction in which two molecules combine to form a larger molecule, with the removal of a water molecule.

Hydrolysis

A process where water splits the bonds within a specific substance through a chemical reaction.

Solubility

The ability of a substance (solute) to dissolve into another substance (solvent), forming a solution at a specific temperature and pressure.