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 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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