If the standard deviation of a stock's returns over the last 12 quarters is 4 percent, and if there is no perceived change in volatility, there is a ____ percent probability that the stock'sreturns will be within ____ percentage points of the expected outcome.
A) 68; 4
B) 68; 8
C) 95; 8
D) 95; 6
E) none of the above

Question

Quizplus · Accepted Answer

The standard deviation of a stock's returns over the last 12 quarters is 4 percent, which means that there is a 68% probability that the stock's returns will be within 4 percentage points of the expected outcome.

If the Standard Deviation of a Stock's Returns Over the Last