Determine range of returns


Problem:

Suppose the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 4.8 percent and the standard deviation was 14.3 percent.

Required:

Question 1: What range of returns would you expect to see 95 percent of the time?

Question 2: What range would you expect to see 99 percent of the time?

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Finance Basics: Determine range of returns
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