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    Range of Return

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    If the arithmetic mean of a sample stock returns for a number of years is 6.2% and the standard deviation of that sample return is 8.7%, what is the range of the return of this stock?

    What is the calculation I use to determine the range of the return of this stock?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:47 pm ad1c9bdddf
    https://brainmass.com/business/accounting/range-of-return-199407

    Solution Preview

    The range can be determined by using the empirical rule (68-95-99.7) which states that 68% of all possible returns would fall within 1 standard deviation, 95% of all possible returns would fall within 2 standard deviations, and 99.7% of all possible returns will fall within 3 standard deviations. I know this doesn't ...

    Solution Summary

    The solution outlines how to arrive at the range of possible returns for a stock given several variables.

    $2.19

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