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Question 5: Monthly Returns: No Calculator! You measure a stocks monthly returns and after applying a normal distribution assumption, conclude that 95% of the time,

Question 5: Monthly Returns: No Calculator! You measure a stocks monthly returns and after applying a normal distribution assumption, conclude that 95% of the time, the stocks return will vary from a loss of 1% to a gain of 7% in a month. What is the stocks monthly volatility?

(A) 4.00% (B) 2.00% (C) 1.00% (D) 0.67% (E) 0.50%

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