Assume the mean and standard deviation of sample returns are 8% and 10% respectively. Assuming that the returns are normally distributed, what is the probability of an actual return below 8%? O A. 16% O B. 50% OC. 2.5% O D. 95%

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A: The expected value is, μ=Ex=∑xPX=x=2×0.36+4×0.08+6×0.54+8×0.02=0.72+0.32+3.24+0.16=4.44 Thus, the…

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Q: Assume the mean and standard deviation of sample returns are 8% and 10% respectively. Assuming that…

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A: a.) Mean=∑x={-4,6,11,8}x×P(x)=(-4)×0.564+(6×0.144)+(11×0.22)+(8×0.072)=-2.256+0.864+2.42+0.576=1.604

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Q: X P(X) X · P(X) (х — и)2 (X – µ)² · P(X) 0.05 10 0.34 15 0.26 20 0.25 25 0.10

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