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%?
What is the area between the mean and our actual score?
- 0.408 in part a, 0.039 in part b
- 0.308 in part a, 0.032 in part b
- 0.408 in part a, 0.319 in part b
- 0.308 in part a, 0.039 in part b