n NISM Certifications
X NISM Series X
Medium

Given a standard deviation of 3% and an expected return of 14%, what is the approximate probability that the actual return will lie between 11% and 17%?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 66.7%

    Correct answer

  2. B

    95%

  3. C

    99.7%

  4. D

    99%

Why this is the answer

According to the empirical rule, about 68% (approximately 66.7%) of data falls within one standard deviation, which here corresponds to 11% to 17%.

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