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A financial analyst wants to know the potential range of returns of the S&P500. Suppose the expected returns for the S&P500 is 16% p.a. and
A financial analyst wants to know the potential range of returns of the S&P500. Suppose the expected returns for the S&P500 is 16% p.a. and the standard deviation is 25% p.a. If we assume that the returns on the S&P500 are normally distributed, which of the following options below, are the best potential range of returns with 95% probability of it occurring? 0 -18%, 57%] O 534% 66% [016% O 19%, 41% 1-25%, 25%]
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