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What is the area between the mean and our actual score

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Question - 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%.

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%?

c. What is the area between the mean and our actual score?

1) 0.408 in part a, 0.319 in part b

2) 0.308 in part a, 0.032 in part b

3) 0.308 in part a, 0.039 in part b

4) 0.408 in part a, 0.039 in part b

Reference no: EM132990315

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