Answer:
between 4% and 20%
Explanation:
Given that :
Expected return = 12%
Standard deviation = 8%
The return on stock Z can be calculated thus
Interval = expected return ± standard deviation
Lower boundary = 12% - 8% = 4%
Upper boundary = 12% + 8% = 20%
Hence, return on stock Z will be between 4% and 20%