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After assessing her clients risk tolerance, a financial advisor recommends a relatively low risk portfolio. Based on a long history of ATRs, the portfolios 1

  1. After assessing her clients risk tolerance, a financial advisor recommends a relatively low risk portfolio. Based on a long history of ATRs, the portfolios 1 Standard Deviation is estimated to be +/- 9 percentage points. If the average historical ATR is +5%, A) What is the likely range of annual total returns next year? And B) What is the probability that next years ATR will be within that range?

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