n 1
10 / 10 points
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%.
In later parts of the question we will ask:
a. What is the probability that the stock returns are greater than 0%?
b. What is the probability that the stock returns are less than 18%?
For this part, answer the following question:
Which table will we use to find the area under the normal curve?
Question options:
F-Table
Z-Table
K-Table
T-Table

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n 2
10 / 10 points
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%.
In later parts of the question we will ask:
a. What is the probability that the stock returns are greater than 0%?
b. What is the probability that the stock returns are less than 18%?