An asset has an average historical rate of return of 13 percent and a variance of 0.0106.What range of returns would you expect to see approximately two-thirds of the time?
A) -2.28 to + 24.48 percent
B) -6.52 to + 32.92 percent
C) -9.58 to + 38.8 percent
D) +2.70 to + 23.30 percent
E) +13.1 to + 13.3 percent

Question

Quizplus · Accepted Answer

Range = 0.13 ± √(0.0106) = + 2.70 to + 23.30 percent

An Asset Has an Average Historical Rate of Return of 13