Question

2. Measures of dispersion, problem 2 Aa Aa Last year, the rates of return on the common stocks in a large portfolio had an approximately mound-shaped distribution, with a mean of 690 and a standard deviation of 3%. Use the empirical rule to answer the following questions. What proportion of the stocks had a return of between 390 and 990? % of the stocks Between -3% and 15%? % of the stocks What proportion had a return that was either less than 3% or more than 9%? % of the stocks What proportion had a positive return? % of the stocks

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Answer #1

Proportion of stocks have return between 3% and 9% =68% of the stocks

between -3% and 15% =99.7% of the stocks

proportion had a return that was either less than 3% or more then 9% =32%

proportion had a positive return =97.5%

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