Asked by Trishton Belisle on May 12, 2024
Verified
If we assume that the annual return on common stocks are normally distributed, then approximately 95% of the returns will fall within the range ___________% if the average historical return is 13.2% with a standard deviation of 20.3%.
A) 7.1 to 33.5
B) -7.1 to 33.5
C) -27.4 to 33.5
D) -5.1 to 45.7
E) -27.4 to 53.8
Normally Distributed
A statistical term describing a distribution of data where most of the observations cluster around the mean, forming a bell-shaped curve.
Annual Return
The percentage change in the value of an investment over a one-year period, including dividends, interest, and capital gains.
Standard Deviation
A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.
- Develop the ability to assess the range of likely returns for a stock.
Verified Answer
Learning Objectives
- Develop the ability to assess the range of likely returns for a stock.
Related questions
A Stock Had Returns of 10%, 2%, 8%, 17%, and ...
BCInc(BCI) Pays an Annual Dividend of $2 Per Share ...
Consider the Following Probability Distribution for Stocks C and D ...
Don Has $3,000 Invested in AT&T with an Expected Return ...
Use the Following Information to Calculate Your Company's Expected Return ...