If the Annual Rate of Return on a Common Stock

question 135

Multiple Choice

If the annual rate of return on a common stock is normally distributed with a mean of 12% and a standard deviation of 10%, what is the range that has a 95% probability of covering the expected return?

• A) 0.6% to 23.4%
• B) 10.8% to 13.2%
• C) 2% to 22%
• D) -8% to 32%

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