According to Investment Digest (“Diversification and the Risk/Reward
According to Investment Digest (“Diversification and the Risk/Reward
Relationship”, Winter 1994, 1-3), 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%.
What is the probability that the stock returns are greater than 17%?
A. .531
B. .510
C. .490
D. .468