Question: The continuously compounded annual return on a stock is normally distributed with a mean of 26% and standard deviation of 30%. With 95.44% confidence, we
The continuously compounded annual return on a stock is normally distributed with a mean of 26% and standard deviation of 30%. With 95.44% confidence, we should expect its actual return in any particular year to be between which pair of values? Hint: Refer to Figure 5.3. a. 34.0% and 86.0%
b. 14.0% and 86.0%
c. 64.0% and 116.0%
d. 4.0% and 56.0%
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