aianjie

 

The correct answer is D

Z = ($60,000 – $47,500) / $12,500 = 1.0

From the table of areas under the normal curve, 84.13% of observations lie to the left of +1 standard deviation of the mean. So, 100% – 84.13% = 15.87% with incomes of $60,000 or more.

aianjie

 

3、A client will move his investment account unless the portfolio manager earns at least a 10% rate of return on his account. The rate of return for the portfolio that the portfolio manager has chosen has a normal probability distribution with an expected return of 19% and a standard deviation of 4.5%. What is the probability that the portfolio manager will keep this account?

A) 0.750.

B) 0.950.

C) 0.977.

D) 1.000.