If We Assume That the Annual Return on Common Stocks

question 242

Multiple Choice

If we assume that the annual return on common stocks are normally distributed, then approximately 95% of the returns will fall within the range ___________% if the average historical return is 13.2% with a standard deviation of 20.3%.

• A) 7.1 to 33.5
• B) -7.1 to 33.5
• C) -27.4 to 33.5
• D) -5.1 to 45.7
• E) -27.4 to 53.8

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