Assume that long-term corporate bonds had an average return of 6.3 percent and a standard deviation of 8.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time?

Question

Quizplus · Accepted Answer

The range of returns expected 68% of the time is within one standard deviation from the mean. Thus, 6.3% ± 8.3% gives a range of -2.0% to 14.6%.

Assume That Long-Term Corporate Bonds Had an Average Return of 6.3