A Stock Has an Average Historical Return of 11

question 80

Multiple Choice

A stock has an average historical return of 11.3 percent and a standard deviation of 20.2 percent.Which range of returns would you expect to see approximately two-thirds of the time?

• A) -23.8 to + 53.0 percent
• B) +4.6 to + 33.8 percent
• C) +5.8 to + 31.6 percent
• D) -3.9 to + 32.5 percent
• E) -8.9 to + 31.5 percent

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Definitions:

Significant Differences

Implies statistically or practically meaningful discrepancies between data sets, groups, or results.

Quality of Production

The degree to which products or services meet or exceed customer expectations in terms of features, reliability, and performance.

Error Rates

The frequency of errors or mistakes occurring in a process, system, or activity, typically expressed as a percentage or ratio.

Output Standards

Predetermined levels of performance or production that serve as benchmarks for evaluating the efficiency and effectiveness of processes.