A Hedge Fund Returns on Average 26% Per Year with a Standard

question 62

Multiple Choice

A hedge fund returns on average 26% per year with a standard deviation of 12%. Using the empirical rule, approximate the probability the fund returns over 50% next year.

• A) 0.5%
• B) 1%
• C) 2.5%
• D) 5%

---

Definitions:

Minor Gets Married

A special legal circumstance where individuals under the age of majority are allowed to enter into marriage, often requiring parental consent or judicial approval.

Disaffirm Contracts

The legal ability of one party to renounce a contract or agreement, thereby rendering it null and void.

Life Insurance

is a contract between an individual and an insurance company where the insurer agrees to pay a designated beneficiary a sum of money upon the death of the insured person.

Psychological Counseling

A form of therapy aimed at addressing mental health issues and improving an individual's emotional well-being through dialogue and various psychological techniques.