If a security has an average return of 14.2% and a standard deviation of 8.4%, then how

Fantastic news! We've Found the answer you've been seeking!

Question:

If a security has an average return of 14.2% and a standard deviation of 8.4%, then how do you get to the following answer? The security's returns can be expected to be between 5.8% and 22.6% approximately 68% of the time.

Posted Date: May 15, 2024 01:34 PM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
Consider the following information: Rate of Return if State Occurs State of Economy Boom :57 Bust of Economy .66 .34 Probability of State Stock A .09 .13 Stock B Stock C .03 .19 .24 -.04 a. What is...
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
What role does the general ledger department play in the conversion cycle?
The following table shows the National League home run leaders and their total home runs for the years 1980 to 2011. a. Determine Q1, Q2 and Q3 for the home run data. b. In which quartile is Howard...
Job costing, accounting for manufacturing overhead, budgeted rates. The Lynn Company uses a job-costing system at its Minneapolis plant. The plant has a Machining Department and an Assembly...
Give three ways in which organizational use of the Internet has affected the information systems auditor's function.
Shahia Company bought a building for $82,000 cash and the land on which it was located for $107,000 cash. The company paid transfer costs of $9,000 ($3,000 for the building and $6,000 for the land)....
If a class contains two methods that have the same name but different parameterLists, the methods are referred to as ________________________ methods. What are the names of the private data members...
Write a detailed paper on Arthur Lewis Contribution to Development Thinking and Policy including: 1. Introduction 2. Classical Roots and Lewisian Offshoots 3. Lewis Impact on Development Theory 4....
Suppose a deposit intermediary receives $1,000,000 in savings deposits. Of these deposited funds, $200,000 is invested in short-term government securities and $800,000 is used to make 25-year...
Expected dividends on a stock are 5 and current market price is 100. Given a constant and perpetual growth of 2%, what is the expected return rate?
The BB Company plans to sell 300,000 units annually of a certain new product at a projected sales price of $10 per unit. The new product's variable cost is $6 per unit, and annual fixed costs are...
1. Describe how legal principles can conflict with religious beliefs in the hospital setting. 2. Describe the role of a Healthcare Ethics Committee, and give an example of a case they may be involved...
How does advanced computational fluid dynamics (CFD) analysis contribute to the design optimization of complex hydraulic structures such as spillways, weirs, and stormwater management systems,...
18 IVT e(-x) = In x Use the Intermediate Value Theorem to verify there is a solution on the interval (1,2).
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
Use the following information to prepare a classified balance sheet for Steller Co. at the end of 2008. Accounts Receivable $42,500 Accounts Payable 8,000 Cash 15,260 Common Stock 42,000 Long-Term...
Tupperware Company claims to be one of the worlds leading direct sellers, supplying premium food storage, preparation and serving items to consumers in more than 100 countries through its Tupperware...
The following transactions apply to Artesia Co. for 2009, its first year of operations. 1. Received $$40,000$ cash from the issue of a short-term note with a 5 percent interest rate and a one- year...

If a security has an average return of 14.2% and a standard deviation of 8.4%, then how

Question:

Expert Answer:

Answer To explain the answer we need to understand the concept of the no... View the full answer

Students also viewed these finance questions