If we assume that the annual return on common stocks are normally distributed, then approximately 95% of the returns will fall within the range ___________% if the average historical return is 13.2% with a standard deviation of 20.3%.

A) 7.1 to 33.5
B) -7.1 to 33.5
C) -27.4 to 33.5
D) -5.1 to 45.7
E) -27.4 to 53.8

Normally Distributed

A statistical term describing a distribution of data where most of the observations cluster around the mean, forming a bell-shaped curve.

Annual Return

The percentage change in the value of an investment over a one-year period, including dividends, interest, and capital gains.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.