To be _ _% confident that the actual returns will lie in a given range, we simply determine the values of the expected return plus two standard deviations and the expected return minus two standard deviations, assuming the returns are normally distributed.

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According to the empirical rule, 95% of the data falls within two standard deviations of the mean for a normally distributed dataset. Therefore, we can be 95% confident that the actual returns will lie within the expected return plus/minus two standard deviations.

To Be _ _% Confident That the Actual Returns Will