A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 84%. If it is known that returns are normally distributed with a mean of 4.1%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.CR: Chapter 13 Review
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A young investment manager tells his client that the probability of making a positive
return with his suggested portfolio is 84%. If it is known that returns are normally
distributed with a mean of 4.1%, what is the risk, measured by standard deviation,
that this investment manager assumes in his calculation?
Transcribed Image Text:A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 84%. If it is known that returns are normally distributed with a mean of 4.1%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation?
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