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The historical annual average return on the long-term government bonds is 5.8% and its standard deviation is 9.3%. Suppose the returns on the long-term government
The historical annual average return on the long-term government bonds is 5.8% and its standard deviation is 9.3%. Suppose the returns on the long-term government bonds are normally distributed. Based on the information, what is the approximate probability that your return on these bonds will be less than -3.5 percent in a given year? What range of returns would you expect to see 95 percent of the time?
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