Question: You create Bolinger bands around a stock based on plus or minus 2 standard deviations. What is the probability the stock price will exceed +2

You create Bolinger bands around a stock based on plus or minus 2 standard deviations. What is the probability the stock price will exceed +2 standard deviations and what does that mean?

Question 26 options:

1)

95% probability and the stock price is relatively high

2)

5% probability and the stock price is relatively high

3)

2.5% probability and the stock price is relatively high

4)

5% probability and the stock price is relatively low

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