Question

The historical returns on a balanced portfolio have had an average return of 12% and a standard deviation of 18%. Assume that returns on this portfolio follow a normal distribution. (You may find it useful to reference the z table.) a. What percentage of returns were greater than 66%? (Round your final answer to 2 decimal places.) b. What percentage of returns were below -6%? (Round your final answer to 2 decimal places.)

Name: the historical returns on a balanced portfolio have had an average return of 12 and a standard deviation of 18 assume that returns on this portfolio follow a normal distribution you may find 82205
Uploaded: 2022-09-29T17:24:53-08:00
Duration: 3 min 56 s
Channel: Sanchit Jain
Description: the historical returns on a balanced portfolio have had an average return of 12 and a standard deviation of 18 assume that returns on this portfolio follow a normal distribution you may find 82205

          The historical returns on a balanced portfolio have had an average return of 12% and a standard deviation of 18%. Assume that returns on this portfolio follow a normal distribution. (You may find it useful to reference the z table.)

a. What percentage of returns were greater than 66%? (Round your final answer to 2 decimal places.)
b. What percentage of returns were below -6%? (Round your final answer to 2 decimal places.)

Added by Amber Y.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Sanchit Jain

09/29/2022

Step 1

Given: Average return (μ) = 12% Standard deviation (σ) = 18% Return value (x) = 66% Calculate the z-score: \[ z = \frac{x - \mu}{\sigma} = \frac{66 - 12}{18} = 3 \] Show more…

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The historical returns on a balanced portfolio have had an average return of 12% and a standard deviation of 18%. Assume that returns on this portfolio follow a normal distribution. (You may find it useful to reference the z table.) a. What percentage of returns were greater than 66%? (Round your final answer to 2 decimal places.) b. What percentage of returns were below -6%? (Round your final answer to 2 decimal places.)