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Veronika
11 days ago
6

10. The continuously compounded annual return on a stock is normally distributed with a mean of 20% and standard deviation of 30

%. With 95.44% confidence, we should expect its actual return in any particular year to be between which pair of values
Mathematics
1 answer:
lawyer [12.5K]11 days ago
7 0
We can anticipate the actual return for any given year to lie between -40% and 80%. With a mean of 20% and a standard deviation of 30%, the limits for a 95.44% confidence interval are determined. The lower limit is calculated as Mean - 2(Standard deviation) resulting in -40%, and the upper limit is Mean + 2(Standard deviation) resulting in 80%.
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