A security has an expected return of 10% and a standard deviation of.03. If the security is normally distributed, then about 68% of the time, the security return will be
A) between 10% and 13%.
B) between 7% and 10%.
C) between 7% and 13%.
D) between 4% and 10%.
E) between 13% and 16%.

Question

Quizplus · Accepted Answer

The 68% range for a normal distribution is within one standard deviation from the mean. Given a mean (expected return) of 10% and a standard deviation of 0.03 (or 3%), the range is from 7% (10% - 3%) to 13% (10% + 3%).

A Security Has an Expected Return of 10% and a Standard