Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected​ return, r​, is 18.7​%; and that the coefficient of​ variation, CV​, is 1.88​, answer the following​ questions:   a. Find the standard deviation of​ returns, sigma Subscript rσr. b. Calculate the range of expected return outcomes associated with the following probabilities of​ occurrence: (1)​ 68%, (2)​ 95%, (3)​ 99%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected​ return, r​, is 18.7​%; and that the coefficient of​ variation, CV​, is 1.88​, answer the following​ questions:
 
a. Find the standard deviation of​ returns,
sigma Subscript rσr.
b. Calculate the range of expected return outcomes associated with the following probabilities of​ occurrence: (1)​ 68%, (2)​ 95%, (3)​ 99%.
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