Consider three stock funds, which we will call Stock Funds 1, 2, and 3. Suppose that Stock Fund 1 has a mean yearly return of 13.10 percent with a standard deviation of 9.20 percent; Stock Fund 2 has a mean yearly return of 6.40 percent with a standard deviation of 10.60 percent, and Stock Fund 3 has a mean yearly return of 8.80 percent with a standard deviation of 12.90 percent.
(a) For each fund, find an interval in which you would expect 95.44 percent of all yearly returns to fall. Assume returns are normally distributed.
