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Question 26 6 pts You also show her that the standard deviation computation allows for the computation of a range of returns that is likely
Question 26 6 pts You also show her that the standard deviation computation allows for the computation of a "range" of returns that is likely to occur with an investment portfolio. Compute the z=1 and z=-1 range of returns for MSFT stock and for the S&P 500, given the information below. Average HPR of MSFT = 10.00% Standard deviation of MSFT HPRs = 20% Beta of MSFT = 1.0 Standard deviation of S&P 500 HPRs = 15% Then choose the statement below that is most correct about these ranges for MSFT and the S&P 500. Range of returns for MSFT is -10% to 30%, and it is narrower than the S&P 500 range of returns O Range of returns for MSFT is 0% to 20%, and it is wider than the S&P 500 range of returns Range of returns for MSFT is -10% to 30%, and it is wider than the S&P 500 range of returns O Range of returns for MSFT is -10% to 30%, and the range of returns for the S&P 500 goes lower but not as high as the range for MSFT
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