If returns of S&P 500 stocks are normally distributed, what range of returns would you expect to see 95% of the time? Ba

Question

2 years ago

7

se your answer on the information below. 19.72%

1 answer:

svetlana [45] · Answer 1 · 2022-07-31T02:37:33+03:00

Answer: -29.75% to 52.33%

Explanation:

Given the Average return and the standard deviation, the range that is to be expected 95% of the time can be calculated by;

Upper bound = Average + (2 * standard deviation)

Lower Bound = Average - (2 * standard deviation)

Upper bound = 11.29% + (2 * 20.52%)

= 11.29% + 41.04%

= 52.33%

Lower bound = 11.29% - (2 * 20.52%)

= 11.29% - 41.04%

= -29.75%

The range is, -29.75% to 52.33%

If returns of​ S&P 500 stocks are normally​ distributed, what range of returns would you expect to see​ 95% of the​ time? Ba