Question: The continuously compounded annual return on a stock is normally distributed with a mean of 20% and standard deviation of 30%. With 95.45% confidence, we

 The continuously compounded annual return on a stock is normally distributed

with a mean of 20% and standard deviation of 30%. With 95.45%

The continuously compounded annual return on a stock is normally distributed with a mean of 20% and standard deviation of 30%. With 95.45% confidence, we should expect its actual return in any particular year to be between which pair of values? Hint Refer to Figure 5.3. -40.0% and 80.0% -30.0% and 80.0% 0-20.6% and 60.6% 0-10.4% and 50.4% G GOOG Enter you Internet A 68.26% 95.44% 99.74% -30 -20 - 10 o +10 +20 +30 -50% -30% - 10% 10% 30% 50% 70% Figure 53 The normal distribution with mean 10% and standard deviation 20%

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