Over a particular period, an asset had an average return of 6.3 percent and a standard deviation of 9.6 percent. What range of returns would you expect to see 95 percent of the time for this asset? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) What about 99 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Over a particular period, an asset had an average return of 6.3 percent and a standard deviation of 9.6 percent. |
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What range of returns would you expect to see 95 percent of the time for this asset? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
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What about 99 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
From the perspective of finance, the concept of standard deviation can help investors to quantify the risk element of their investment. It helps them to determine their minimum required return on the investment. It helps in determining the range of returns that can be expected from a particular asset or a security. The range of returns is defined as the difference between the highest return and the lowest return in the given trading period. The range-bound trading is characterized by the rate of returns staying in a definable range over time.
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