Series Average return What range of returns would you expect to see 95 percent o

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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

Mean Std Deviation Large compnay stock 11.20% 19.40%    1 95% of data will fall between +/- 1.96 standard deviation So Range upper limit =11.2%+1.96*19.4%= 49.22% Range Lower Limit =11.2%-1.96*19.4% = -26.82% So exprected range= -26.82% to 49.22%    2 99% of data will fall between +/- 2.58 standard deviation So Range upper limit =11.2%+2.58*19.4%= 61.25% Range Lower Limit =11.2%-2.58*19.4% = -38.85% So exprected range= -38.85% to 61.25%

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