Purchase Solution

# Standard Deviation and Investment

Not what you're looking for?

Please solve with the following problem. Provide step by step calculations with explanations.

John is investing in the S&P 500. His expected return on the S&P 500 is 10% with a standard deviation of 4%. If John is investing \$200,000, then what is the dollar range of returns that John can have with 90 percent confidence at the end of the year?

##### Solution Summary

This solution helps with a problem involving standard deviation and investment. It helps find the dollar range of returns a person who is investing in a stock recieves at the 90 percent confidence interval at the end of the year, given standard deviation and expected return. Step by step calculations are given along with explanations of each step. The explanation is given in 226 words.

##### Solution Preview

Problem: John is investing in the S&P 500. His expected return on the S&P 500 is 10% with a standard deviation of 4%. If John is investing \$200,000, then what is the dollar range of returns that John can have with 90 percent confidence at the end of the year?

Solution:
We assume that the stock return ...

##### Free BrainMass Quizzes

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

##### Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.