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The continuously compounded annual return on a stock is normally distributed with a mean of 25% and standard deviation of 15%. With 95.44% confidence, we
The continuously compounded annual return on a stock is normally distributed with a mean of 25% and standard deviation of 15%. With 95.44% confidence, we should expect its actual return in any particular year to be between which pair of values? Hint Refer to Figure 5.3. 0-5.0% and 55.0% O 5.0% and 55.0% 0-20.0% and 70.0% 10.0% and 40.0% 68.26% 95.44% 99.74% +30 -30 - 50 -20 -30 -10 -10 0 10 +19 30 +20 50 70 Figure 5.3 The normal distribution with mean 10% and standard deviation 20%
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