If the Expected Return Is 10%, the Standard Deviation Is

question 51

True/False

If the expected return is 10%, the standard deviation is 3%, about 95% of the time returns will be expected to fall between 1% and 19%.

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Definitions:

Confidence Level

The probability that a parameter lies within a specified range of values, often used in interval estimation to convey the reliability of an estimate.

Assignable Cause

An identifiable factor that causes a change or variation in a process or system, distinguishable from random variation.

Variation

The degree to which data points in a dataset differ from each other and from the mean, indicating the dispersion within the dataset.

Output

The result or product generated by a process or system.