Jeremy owns a stock that has historically returned 7.8 percent annually with a standard deviation of 12.43 percent.

Based on Figure 1.10 from the textbook, there is only a 0.5 percent chance that the stock will produce a return greater than _____ percent in any one year.

The graph shows normal distribution -3(Standard Diviation)=-48.1% -2(Standard Diviation)=-28.1% -1(Standard Diviation) = -8.1% 0= 11.9% +1(Standard Diviation)=31.9% +2(Standard Diviation)=51.9% +3(Standard Diviation)=71.9%

95% probability is between -2 and +2 and 99% prbability is -3 to +3standard deviation