Historical returns on balanced portfolio

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Reference no: EM13891967

The historical returns on a balanced portfolio have had an average return of 8% and a standard deviation of 12%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule for normal distributions to answer the following questions.

a. What percentage of returns were greater than 20%? (Round your answer to the nearest whole percent.)

b. What percentage of returns were below −16%? (Round your answer to 1 decimal place.)

Reference no: EM13891967

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