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Find the standard deviation of returns

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Reference no: EM131106943

Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r¯, is 18.9%; and that the coefficient of variation, CV, is 0.75; answer the following questions:

a. Find the standard deviation of returns, σr.

b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: 

(1) 68%, 
(2) 95%, 
(3) 99%.

c. Draw the probability distribution associated with your findings in parts a and b.

Reference no: EM131106943

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