For normal probability distributions, 95 percent of the possible outcomes will lie between ±1 standard deviation from the expected return.

Question

Quizplus · Accepted Answer

For normal probability distributions, approximately 95 percent of the possible outcomes lie within ±1.96 standard deviations from the mean, not ±1 standard deviation. ±1 standard deviation from the mean encompasses about 68% of the possible outcomes.

For Normal Probability Distributions, 95 Percent of the Possible Outcomes