**Unformatted text preview: **Mean = ( .08 + .12 + -.04) / 3 = .0533 Variance = (.08 - .0533)"2 + (.12 - .0533)"2 = (-.04 - .0533)"2/ (3 - 1)= .00693 Standard deviation = .00693 " .5 = .0833 Probability: a 3% loss (return of -3%) lies one standard deviation below the mean. There is 16% ofthe probability falling below that point (68% falls between -3% and 13.66%, so 16% lies below -3% and 16% lies above 13.66%). 10.30...

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