Answer:
The returns will typically vary from a gain of 25% to a loss of -14.5%
Step-by-step explanation:
Return variation is given by the formula:
Return variation = Return ± (2*standard Deviation)
Return = 5.5%
Standard Deviation = 10%
Gain = return + (2 * Standard Deviation)
Gain = 5.5% + (2*10%)
Gain = 5.5% + 20%
Gain = 25%
Loss = Return - (2 * Standard Deviation)
Loss = 5.5% - ( 2 * 10%)
Loss = 5.5% - 20%
Loss = - 14.5 %
The returns will typically vary from a gain of 25% to a loss of -14.5%