Assume that large-company stocks had an average return of 11.4 percent and a sta

Question

Assume that large-company stocks had an average return of 11.4 percent and a standard deviation of 19.7 percent for a 40-year period. What range of returns would you expect to see on these stocks 95 percent of the time?

95 percent range = 11.4 percent

-28.0 percent to 50.8 percent -50.3 percent to 64.1 percent -50.3 percent to 73.9 percent 28.0 percent to 50.8 percent -50.3 percent to 53.2 percent Assume that large-company stocks had an average return of 11.4 percent and a standard deviation of 19.7 percent for a 40-year period. What range of returns would you expect to see on these stocks 95 percent of the time? -28.0 percent to 50.8 percent -50.3 percent to 64.1 percent -50.3 percent to 73.9 percent 28.0 percent to 50.8 percent -50.3 percent to 53.2 percent 95 percent range = 11.4 percent ? + -(2 ?? 19.7 percent) = -28.0 percent to 50.8 percent I dont understand this ^ can someone help explain how they get -28% - 50.8% better Please ?

Explanation / Answer

95 percent range = 11.4 percent

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