You don’t imagine that when someone, say, characterizes a financial asset as having the expected return of 5% with 20% volatility, these probabilities are precise, do you?
Such an expression usually implies a normal probability distribution with the given mean and standard deviation. How do you understand probabilities as applied to continuous variables?
Those are not even probabilities at all.
Such an expression usually implies a normal probability distribution with the given mean and standard deviation. How do you understand probabilities as applied to continuous variables?