2) Last year an investment in the Vanguard Total Market Index returned a negative 7.6 percent...

2) Last year an investment in the Vanguard Total Market Index returned a negative 7.6 percent per year with a standard deviation of 18.3 percent (in line with the 18% observed in decades past, but much higher than the past couple of years). Assuming that the returns on this investment are at least roughly normally distributed, how frequently do you expect to earn between -25.9 percent and 10.7 percent? How often do you expect to earn less than -25.9 percent?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago

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