Over the past four years,a stock produced returns of 15 percent,6 percent,11 percent,and 22 percent,respectively.Based on these four years,what range of returns would you expect to see 95 percent of the time?

Question

Quizplus · Accepted Answer

Average return = (0.15 + 0.06 + 0.11 + 0.22)/4 = 0.135σ² = [(0.15 - 0.135)² + (0.06 - 0.135)² + (0.11 - 0.135)² + (0.22 - 00.135)²]/(4 - 1) = 0.004567σ = √0.004567 = 0.067577 95 percent probability range = 0.0.135 ± (2 × 0.067577)Range of returns = -0.02 percent to 27.02 percent

Over the Past Four Years,a Stock Produced Returns of 15