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1.Suppose the historical returns on a stock are normally distributed. The mean return is 12%, and the standard deviation is 6%. Then, what is the
1.Suppose the historical returns on a stock are normally distributed. The mean return is 12%, and the standard deviation is 6%. Then, what is the approximate probability that your return on this stock is less than 6% in a given year? What range of returns would you expect to see 95% of the time? What range would you expect to see 99% of the time?
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