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Small-cap mutual funds gained an average of 8.4% in the first half of 2000. Assume that the distribution of returns in the first half of 2000 for mutual funds specializing in small companies is distributed as a normal random variable with a mean of 8.4% and a standard deviation of 10%. The return for 90% of small company mutual funds was less than what value?

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Solution Summary

The expert examines small-cap mutual funds gained for standard deviation. The return for mutual funds of the values are determined.

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Mean = 8.4%

Std Dev = 10%

Z value =(x - mean) / std dev

The question asks for the ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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