If we assume that the annual return on common stocks are normally distributed, then approximately 95% of the returns will fall within the range ___________% if the average historical return is 13.2% with a standard deviation of 20.3%.

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Using the properties of a normal distribution, approximately 95% of the observations fall within 2 standard deviations of the mean. Therefore, we calculate the range as: Mean ± 2(Standard Deviation) = 13.2% ± 2(20.3%) = 13.2% ± 40.6% = -27.4% to 53.8%.

If We Assume That the Annual Return on Common Stocks