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A Bond Has an Average Return of 6

Question 16

Multiple Choice

A bond has an average return of 6.8 per cent and a standard deviation of 4.6 per cent.What range of returns would you expect to see 68 per cent of the time?


A) 2.2 per cent to 11.4 per cent
B) 4.6 per cent to 11.4 per cent
C) 4.6 per cent to 22.8 per cent
D) 11.4 per cent to 22.8 per cent
E) 11.4 per cent to 16.0 per cent

Correct Answer:

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