Question

The historical returns on a portfolio had an average return of 9 percent and a standard deviation of 13 percent. Assume that returns on this portfolio follow a bell-shaped distribution. a. Approximately what percentage of returns were greater than 48 percent? (Round your answer to the nearest whole percent.) b. Approximately what percentage of returns were below -4 percent?

Name: the historical returns on a portfolio had an average return of 9 percent and a standard deviation of 13 percent assume that returns on this portfolio follow a bell shaped distribution a appr 62085
Uploaded: 2022-02-10T14:45:56-08:00
Duration: 3 min 30 s
Channel: Ajiboye Tunde
Description: the historical returns on a portfolio had an average return of 9 percent and a standard deviation of 13 percent assume that returns on this portfolio follow a bell shaped distribution a appr 62085

          The historical returns on a portfolio had an average return of 9 percent and a standard deviation of 13 percent. Assume that returns on this portfolio follow a bell-shaped distribution.
a. Approximately what percentage of returns were greater than 48 percent? (Round your answer to the nearest whole percent.)
b. Approximately what percentage of returns were below -4 percent?

Added by Beatriz V.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Ajiboye Tunde

02/10/2022

Step 1

- Standardize the random variable X: \(Z = \frac{48 - 9}{13} = 3\) - Using a standard normal distribution table or calculator, find the probability that Z is greater than 3. - This gives us a probability of approximately 0.0014. Show more…

Show all steps

Thanks for your feedback!

The historical returns on a portfolio had an average return of 9 percent and a standard deviation of 13 percent. Assume that returns on this portfolio follow a bell-shaped distribution. a. Approximately what percentage of returns were greater than 48 percent? (Round your answer to the nearest whole percent.) b. Approximately what percentage of returns were below -4 percent?