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Question and Problem Answers
page 1
Chapter 3 Measuring Portfolio Risk
±
3  1:
Just expand the standard formula and regroup. This question should bring back fond memories of high school algebra.
±
3  2:
To visualize the risk associated with these stocks we use the properties of the normal distribution: that an observation lies
within one standard deviation of the mean 68% of the time,
within two standard deviations of the mean 95% of the time, and
within three standard deviations of the mean 99.7% of the time.
Monthly Returns 2/28/05 to 2/28/06
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 Spring '07
 Jackson
 Normal Distribution, Standard Deviation, Financial Markets, high school algebra, Elisabeth Oltheten, Measuring Portfolio Risk, PG BA GOOG

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