Your family has invested in a security over the last 100 years.The expected return during that period has been .15 and the variance of the returns has been .048.Your investment advisor told you that the security had a 95th percentile performance (with respect to its historical performance)this period.What was the actual return during the period?

Question

Quizplus · Accepted Answer

E(X)= .15,Var(X)= .048 ==> Std(X).219
Return = .15 + 2(.219)= .15 + .438 = .588

Your Family Has Invested in a Security Over the Last