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Over a Number of Years, the Average Annual Rate of Return

Question 79

Multiple Choice

Over a number of years, the average annual rate of return for Fidelity's Capital Appreciation mutual fund has been .17 with a standard deviation of .35.Assume annual returns are approximately normally distributed around the average rate.Using this historical information as the basis for the calculation, there is a 20% probability that this fund will have a return greater than or equal to how much?


A) -.124
B) .198
C) .464
D) .3732
E) -.293

Correct Answer:

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