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 90% 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 10.5%
Added by Debra M.
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We can use a standard normal distribution table or calculator to find that the z-score is approximately 1.28. Show more…
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