Question

Over a particular period, an asset had an average return of 5.6 percent and a standard deviation of 9.1 percent. What range of returns would you expect to see 68 percent of the time for this asset? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answer 1

Answer:

Expected range of returns = -3.50% to 14.70%

Explanation:

As per the properties of bell curve, 68% of the data is within one standard deviation.

Expected range of returns = Mean - Standard deviation  to  Mean - Standard deviation

Expected range of returns = 5.6% - 9.1% to 5.6% + 9.1%

Expected range of returns = -3.50% to 14.70%