Historical returns on balanced portfolio
Course:- Business Economics
Reference No.:- EM13891967

Assignment Help
Assignment Help >> Business Economics

The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 12%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule for normal distributions to answer the following questions.

a. What percentage of returns were greater than 20%? (Round your answer to the nearest whole percent.)

b. What percentage of returns were below −16%? (Round your answer to 1 decimal place.)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
For promotion to lieutenant, police officers in a city police department first have to pass a written aptitude test. This requirement was challenged in court by several black
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained
In a certain country, demand for goods and services is outstripping supply. Inflation is running at 10%, well above the target level of 2%. How would you use monetary policy t
Examine the key factors affecting the demand for and the supply of a good in general . Distinguish between a change in demand and a change in the quantity demanded (movement a
Suppose that, over a 564 day period, Mike Inc.'s stock price experienced (negative) Log Returns of -14%. Convert the Log Return into a Standard Return. What would the annualiz
Suppose the exchange rate changes so that less Japanese yen are required to buy a dollar. We would conclude that a. the Japanese yen has appreciated in value b. U.S citizens w
In 2012, the price of corn was $8 a bushel. In 2014, a huge harvest caused the price to drop to about $4 a bushel because quantity demanded for the corn was less than the quan
Suppose the parameters of the IS curve are a ¯i = 0, b ¯ = 0.5, r ¯ = 3% and the real interest rate is initially R = 3%. Is the economy in its long-term equilibrium? Explain.