Question
can somone explain this
What range of returns should you expect to see with a 99 percent probability on an asset that has an average return of 1067 p
Explanation Range = 10.67% +/- (24.55*3)% Range =-62.98% to 84.32%
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Answer #1

formula:

The range of return that you can expect to see 99% of the time is = Mean+- (3×standard deviation)


Given:

mean = average return = 10.67%
Standard deviation= 24.55%

The range of return that you can expect to see 99% of the time is = 10.67+-(3×24.55)

= 62.98% to 84.32%

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