Answer: percent −17.0 to 20.0 percent
Working notes for the above answer is as under
First of all we will find average return as follow
| Year | Return |
| 1 | 0.07 |
| 2 | 0.12 |
| 3 | -0.24 |
| 4 | 0.17 |
| Total | 0.12 |
| Average Return | 0.12/4 |
| Average Return | 0.03 |
NOw we will find
(0.07 – 0.03)2+ (0.12 – 0.03) 2+ (-0.24 – 0.03) 2+ (0.17 – 0.03) 2]
=0.1022
95% probability range =
=0.03 – ( 2* 0.1022)
=0.03 -0.2044
=0.1744
So the answer is percent −17.0 to 20.0 percent
