The right reply is -27.8% and 57%
Step-by-step explanation:
Your inventory with an average return of 14.6 percent
Standard deviation of 21.2 percent.
You have 95% likelihood range = 14.6% ± (2 × 21.2%)
You will not lose extra than = 14.6% - (2 × 21.2%)
= 0.146 - ( two × 0.212 )
= 0.146 - 0.424
= -0.278 = -27.8%
You will now not earn greater than = 14.6% + ( 2× 21.2% )
= 0.146 + ( 2 × 0.212 )
= 0.146 + 0.424
= 0.57 = 57%
You have a 95% risk that you will not lose extra than -27.8% nor earn greater than 57% on this stock.
A wellknown deviation (or σ) is a measure of how dispersed the data is in relation to the mean. Low general deviation capacity information are clustered round the mean, and high fashionable deviation shows records are more unfold out.
Learn more about standard deviation here:
