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A stock has earned average monthly returns of 0.64% with a standard deviation of 10.58% during the past 5 years. Assuming that montly stock retums
A stock has earned average monthly returns of 0.64% with a standard deviation of 10.58% during the past 5 years. Assuming that montly stock retums of individual stocks are normally distributed and that uture returns are expected to follow the same distribution as past realized returns. at is he 88%, confidence interval or his stock's future monthly returns? (Hint: Remember the 68-95-99.7% rule we covered in class: that % of observations fall within 1, 2, 3 sigmas around the mean respectively. Do not press enter / submit until after you put your answer in both boxes below!) There is a 68% chance that future monthly stock returns will fall between a minimum o % and a maximum of % Round to two decimal points
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