The mean of the annual return for common stocks from 1926


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%.

In later parts of the question we will ask:

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%?

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

  • 0.408 in part a, 0.039 in part b
  • 0.308 in part a, 0.032 in part b
  • 0.408 in part a, 0.319 in part b
  • 0.308 in part a, 0.039 in part b

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Basic Statistics: The mean of the annual return for common stocks from 1926
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