(Solution) - A European growth mutual fund specializes in stocks from the -(2025 Original AI-Free Solution)

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A European growth mutual fund specializes in stocks from the British Isles, Continental Europe, and Scandinavia. The fund has over 100 stocks. Let x be a random variable that represents the monthly percentage return for this fund. Based on information from Morningstar x has mean ? = 1.4% and standard deviation ? = 0.8%.
(a) Let?s consider the monthly return of the stocks in the European growth fund to be a sample from the population of monthly returns of all European stocks. Is it reasonable to assume that x (the average monthly return on the 100 stocks in the European growth fund) has a distribution that is approximately normal? Explain.