Historical U.S. market returns tend to approximately follow a normal distribution, which implies that returns are plus or minus one standard deviation from the mean (arithmetic return) two-thirds of the time and are plus or minus two standard deviations from the mean 95% of the time.

Based on the information in Figure 9.5 and focusing on the mean returns for "all stocks," what is the range of returns that are one standard deviation from the mean?

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Small stocks All stocks Large stocks 30-year treasury bonds 90-day T-bills Inflation Compound Returns (geometric) 16.9% 9.6% 9.2% 5.6% 3.9% 30% Mean Returns (arithmetic) 256% 11 .6% 11 .0% 6.3% 4.0% 3.1% Volatility (standard deviation) 49.1% 20.3% 19.2% 12.3% 3.4% 41%