Question
In: Math
For the third quarter (Q3) of 2014, a group of 163 mutual funds had a mean...
For the third quarter (Q3) of 2014, a group of 163 mutual funds
had a mean return of 4.6% with a standard deviation of 5.1%. A
histogram of fund returns shows a unimodal, symmetric shape. (Enter
your answer to two decimal places.)
(a) What return is necessary for a fund to be classified among the
top 25%?
%
(b) What return is necessary for a fund to be classified among the
bottom 10%?
%
(c) What return is necessary for a fund to be classified among the
top 1%?
%
(d) What is the IQR of these returns?
%
Solutions
Expert Solution
Solution:
(a) What return is necessary for a fund to be classified among the top 25%?
Answer: 8.04%
Explanation:
We first need to the z value corresponding to the area (1-0.25=0.75). The z value is:
Now using the z-score formula, we have:
(b) What return is necessary for a fund to be classified among the bottom 10%?
Answer: -1.94%
Explanation:
We first need to the z value corresponding to the area 0.1. The z value is:
Now using the z-score formula, we have:
(c) What return is necessary for a fund to be classified among the top 1%?
Answer: 16.46%
Explanation:
We first need to the z value corresponding to the area (1-0.01=0.99). The z value is:
Now using the z-score formula, we have:
(d) What is the IQR of these returns?
Answer: 6.73%
Explanation:
milcah answered 1 year agoRelated Solutions
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