What is the likely range of annual total returns next year

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Question: After assessing her client's risk tolerance, a financial advisor recommends a relatively low risk portfolio. Based on a long history of ATRs, the portfolio's 1 Standard Deviation is estimated to be +/- 9 percentage points. If the average historical ATR is +5%,

A) What is the likely range of annual total returns next year? And

B) What is the probability that next year's ATR will be within that range?

Reference no: EM132762580

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