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The historical returns on a portfolio had an average return of 8 percent and a standard deviation of 12 percent. Assume that returns on this portfolio follow a bell-shaped distribution.What percentage of returns were greater than 20 percent?

Respuesta :

Answer:

percentage of returns is 16%

Explanation:

given data

average return μ = 8 percent

standard deviation σ = 12 percent

x = 20

solution

we get here

z = [tex]\frac{x-\mu }{\sigma }[/tex]     ......................1

put here value and we will get

z =  [tex]\frac{(20 - 8)}{12}[/tex]  

z  = 1  

so here

P(x > 12) = P(z > 1)

= 0.1587 = 16%

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