Question: Based on historical data, you estimated the mean and standard deviation of annual returns for Eastern Networks common stock to be 21.70% and 16.5%, respectively.

 Based on historical data, you estimated the mean and standard deviation

Based on historical data, you estimated the mean and standard deviation of annual returns for Eastern Networks common stock to be 21.70% and 16.5%, respectively. Assume that the historical return distribution is a good estimate for the distribution of future returns, and that returns are normally distributed. Each of the following statements is false except A) There is approximately 5% chance for the rate of return on Eastern common stocks to be outside the - 11.3% to 54.7% range. B) There is approximately 95% chance for the rate of return on Eastern common stocks to be outside the - 11.3% to 54.7% range. C) There is approximately 5% chance for the rate of return on Eastern common stocks to be outside the 5.2% to 38.2% range. D) There is approximately 68% chance for the rate of return on Eastern common stocks to be inside the - 11.3% to 54.7% range. E) There is approximately 32% chance for the rate of return on Eastern common stocks to be inside the 5.2% to 38.2% range

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