If the expected return is 10%, the standard deviation is 3%, about 68% of the time returns will be expected to fall between 10% and 13%.

Question

Quizplus · Accepted Answer

According to the empirical rule (or 68-95-99.7 rule) for a normal distribution, about 68% of the time returns will be expected to fall within one standard deviation of the mean. Therefore, with a mean (expected return) of 10% and a standard deviation of 3%, returns would be expected to fall between 7% (10% - 3%) and 13% (10% + 3%) about 68% of the time.

If the Expected Return Is 10%, the Standard Deviation Is