Consider a population of 1024 mutual funds that primarily invest in large companies.
Consider a population of 1024 mutual funds that primarily invest in large companies. You have determined that μ, the mean one-year total percentage return achieved by all the funds, is 8.00 and that ơ, the standard deviation, is 1.75. Complete (a) through (c).
a. According to the empirical rule, what percentage of these funds is expected to be within ±2 standard deviations of the mean?
b. According to the Chebyshev rule, what percentage of these funds are expected to be within ±6 standard deviations of the mean?
c. According to the Chebyshev rule, at least 93.75% of these funds are expected to have one-year total returns between what two amounts?
Homework Answers
c) 1 - 1/k2 = 0.9375
or, 1 - 0.9375 = 1/k2
or, 0.0625 = 1/k2
or, k2 = 1/0.0625
or, k = 
= 4
The required amounts are
= 8 - 4 * 1.75 = 1
= 8 + 4 * 1.75 = 15
Between 1 and 15
Add Answer to:
Consider a population of 1024 mutual funds that primarily invest in large companies.
Consider a population of 1024 mutual funds that primarily invest in large companies. You have determined...
Consider a population of 1024 mutual funds that primarily invest in large companies. You have determined that the mean one-year total percentage return achieved by all the funds, is 5.80 and that , the standard deviation, is 4.00 According to the Chebyshev rule, at least 93.75% of these funds are expected to have one-year total returns between what two amounts?
Consider a population of 1,024 mutual funds that primarily invest in large companies. You have determined...
Consider a population of 1,024 mutual funds that primarily invest in large companies. You have determined that µ, the mean one-year total percentage return achieved by all the funds, is 8.20 and that σ, the standard deviation, is 2.75. a. According to the Chebyshev rule, what percentage of these funds is expected to be within ±1 , ± 2, ± 3 standard deviations of the mean. b According to the Chebyshev rule, at least 93.75% of these funds are expected...
Consider a population of 1,024 mutual funds that primarily invest in large companies
Consider a population of 1,024 mutual funds that primarily invest in large companies. You have determined that μ, the mean one-year total percentage return achieved by all the funds, is 8.20 and that σ, the standard deviation, is 2.75. a. According to the empirical rule, what percentage of these funds is expected to be within ±1 standard deviation of the mean? b. According to the empirical rule, what percentage of these funds is expected to be within ±2 standard deviations of the...
In the last quart of 2007 a group of 64 mutual funds had mean return of...
In the last quart of 2007 a group of 64 mutual funds had mean
return of 2.8%
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 28% with a standard deviation of 6.5%. Fa normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more...
In the last quarter of 2007, a group of 64 mutual funds had a mean return...
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.8% with a standard deviation of 6.5% If a normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely. Be sure to draw a picture first. a) Returns of -16.7% or less c) Returns...
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 5.45.4% with a sta...
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 5.45.4% with a standard deviation of 6.26.2%. If a normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely. Be sure to draw a picture first. a) Returns of negative 13.2−13.2% or lessless b)...
Ch 7 Q1 In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.4% with a standard deviation of...
Ch 7 Q1 In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.4% with a standard deviation of 5.5%. If a normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely. Be sure to draw a picture first. a) Returns of −14.1%...
A pension fund manager is considering three mutual funds. The first is a stock fund the second is...
A pension fund manager is considering three mutual funds. The first is a stock fund the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of th risky funds are The following data apply to Problems 8-12. Standard Deviation 32% 23 Expected Return 15% Stock fund (S Bond fund (B) The correlation between the fund returns is.15 8. Tabulate and draw...
2) The graph below represents household income for the US population in the year 2005. The...
2) The graph below represents household income for the US population in the year 2005. The average (mean) income was $63,344 and the median income was $46,326. population standard deviation of $27,435. Assume a 112,363,000 households below $250,000 150000 Total 114,384,000 households 94 705 1250,000 a. Explain why the Empirical rule cannot be used for this data. Why would Chebyshev's rule be a good alternative? According to Chebyshev's rule, what income range would have at least the middle 75% of...
We were unable to transcribe this imageBledsoe Small-Cap Fund This fund primarily invests in small-capitalization stocks....
We were unable to transcribe this imageBledsoe Small-Cap Fund This fund primarily invests in small-capitalization stocks. As such, the returns of the fund are more volatile. The fund can also invest 10 percent of its assets in companies based outside the United States. This fund charges 1.70 percent in expenses. Bledsoe Large-Company Stock Fund This fund invests primarily in large- capitalization stocks of companies based in the United States. The fund is managed by Evan Bledsoe and has outperformed the...
In the last quart of 2007 a group of 64 mutual funds had mean
return of 2.8%
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 28% with a standard deviation of 6.5%. Fa normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more...
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.8% with a standard deviation of 6.5% If a normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely. Be sure to draw a picture first. a) Returns of -16.7% or less c) Returns...
A pension fund manager is considering three mutual funds. The first is a stock fund the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of th risky funds are The following data apply to Problems 8-12. Standard Deviation 32% 23 Expected Return 15% Stock fund (S Bond fund (B) The correlation between the fund returns is.15 8. Tabulate and draw...
2) The graph below represents household income for the US population in the year 2005. The average (mean) income was $63,344 and the median income was $46,326. population standard deviation of $27,435. Assume a 112,363,000 households below $250,000 150000 Total 114,384,000 households 94 705 1250,000 a. Explain why the Empirical rule cannot be used for this data. Why would Chebyshev's rule be a good alternative? According to Chebyshev's rule, what income range would have at least the middle 75% of...
We were unable to transcribe this imageBledsoe Small-Cap Fund This fund primarily invests in small-capitalization stocks. As such, the returns of the fund are more volatile. The fund can also invest 10 percent of its assets in companies based outside the United States. This fund charges 1.70 percent in expenses. Bledsoe Large-Company Stock Fund This fund invests primarily in large- capitalization stocks of companies based in the United States. The fund is managed by Evan Bledsoe and has outperformed the...
Most questions answered within 3 hours.
-
Write a program that reads a sentence input from the user. The
program should count the...
asked 1 hour ago -
As noted in this chapter, C and C++ make a distinction between a
declaration and a...
asked 2 hours ago -
What is triple equality of S8 and Al2 from equation
,Al+S8 - Al2S3 and molar mass
asked 1 hour ago -
Why would a person own all of the stock of two companies (1) a
manufacturer of...
asked 1 hour ago -
whats the status of bitcoin vs the bitcoin cash fork? who
favored the fork and who...
asked 1 hour ago -
The Hippie Food Store is planning a major expansion for 4
quarters (a year) from today....
asked 1 hour ago -
Marketing Simulation: Managing Segments and Customers V2
answers?
asked 2 hours ago -
Suppose a solution contains a mixture of 0.22 M methamphetamine
(pKb = 4.50) and 0.19 M...
asked 2 hours ago -
5)Two sets of candidates are competing for the position on the board of directors of a company. The probabilities that the first and second sets will win are 0. 6 and 0. 4 respectively. If the first set wins, the probability of introducing a new product i
asked 3 hours ago -
One bag contains 4 white and 2 black balls. Another contains 3 white and 5 black balls. One ball is drawn from each bag. Find the probability that both are of same colour.
asked 3 hours ago -
The real risk-free rate of interest is expected to remain
constant at 4%. Inflation is expected...
asked 4 hours ago -
Maths
asked 4 hours ago