randyaragon64 randyaragon64
  • 18-09-2022
  • Mathematics
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According to Investment Digest ("Diversification and the Risk/Reward Relationship", Winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992 was 16.5%, and the standard deviation of the annual return was 19%.

What is the probability that the stock returns are less than 18.5%

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