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In: Statistics and Probability

A young investment manager tells his client that the probability of making a positive return with...

A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 94%. If it is known that returns are normally distributed with a mean of 6.2%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation? (Round "z" value to 2 decimal places and final answer to 2 decimal places. Note: if you get 7.52 % for your answer, enter it as .08. 7.52% is .0752, so rounding it to 2 decimal places gives .08)

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orchestra answered 1 year ago
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