Series Average return What range of returns would you expect to see 95 percent o
ID: 2750256 • Letter: S
Question
Series
Average return
What range of returns would you expect to see 95 percent of the time for large-company stocks? (Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)
What about 99 percent of the time? (Negative amount should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Explanation / Answer
Answer : Expected Range 95% of time
Lower Range for large company stock = (mean - 2 std dev)
= 11.4 - 2*20.10
= 11.4-40.20
= -28.80
Upper Range for large company stock = (mean+ 2 std dev)
= 11.40 +2*20.10
= 11.40+40.20
= 51.60
Expected range on 95% of time = -28.80% to 51.60%
Answer- 2 Expected Range 99% of time
Answer : Lower Range for large company stock = (mean - 3 std dev)
= 11.4 - 3*20.10
= 11.4-60.30
= -48.90
Upper Range for large company stock = (mean+ 3 std dev)
= 11.40 +3*20.10
= 11.40+60.30
= 71.70
Expected range on 99% of time = -48.90% to 71.70%
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