Q1 a/b/c

1. VARIANCE and STANDARD DEVIATION A) For a stock with a weighted average return of 10% and a standard deviation of 23% (one standard deviation), draw a bell shaped curve (normal distribution) that illustrates these results. B) 95% of the time (average return +/ - two standard deviations) which range of stock returns would you expect to observe? Express your answer from % to % C) Explain why a higher variance and standard deviation of a stock's returns translates to increased risk for the investor