The returns of a stock follow the normal distribution, with average return of 13.2% and standard deviation of 23.7%. What is the probability that in any given year, the stock's return will be between -34.2% and +36.9%? Assume the following: the one standard deviation probability range is 0.68; the two standard deviation probability range is 0.95; and the three standard deviation probability range is 0.99. O 0.685 O 0.955 O 0.750 O 0.815 O 0.950

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...
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The returns of a stock follow the normal distribution, with average return of 13.2% and standard
deviation of 23.7%. What is the probability that in any given year, the stock's return will be between
-34.2% and +36.9%? Assume the following: the one standard deviation probability range is 0.68; the
two standard deviation probability range is 0.95; and the three standard deviation probability range
is 0.99.
0.685
O 0.955
O 0.750
0.815
O 0.950
Transcribed Image Text:The returns of a stock follow the normal distribution, with average return of 13.2% and standard deviation of 23.7%. What is the probability that in any given year, the stock's return will be between -34.2% and +36.9%? Assume the following: the one standard deviation probability range is 0.68; the two standard deviation probability range is 0.95; and the three standard deviation probability range is 0.99. 0.685 O 0.955 O 0.750 0.815 O 0.950
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