Quote:
As others have correctly stated, the muzzle velocity only matters if the gun was fired in a complete vacuum and the bullet was allowed to fall without any outside forces besides gravity, in which case the bullet would land with the same velocity at which it was fired.
In fact, under those theoretical circumstances, the bullet would land back in the barrel of the gun that fired it.

There have been a number of cases where stray bullets have killed people, sometimes people a considerable distance away. Some of these have even been bullets fired "in the air", but I'm not sure that there's ever been a case of a deadly bullet that was fired
straight up into the air. Bullets fired at an angle (even a slight angle) retain much more of their initial impetus and, after reaching apogee of the ballistic arc, begin to accelerating again. (I had a distant cousin by marriage who died this way. She keeled over while cleaning her shower stall one day, in a closed, windowless bathroom. Her husband thought it was a heart attack until he saw a small spot of blood on her dress. The autopsy revealed that a bullet had hit her in the heart. They eventually traced the bullet back so someone target shooting blocks away who had missed his target.)
Mythbusters did one on the bullet question as well (and I thought their methodology was sound, in this case, which I don't always do.) They verfied that in most cases a bullet fired STRAIGHT up will reach terminal velocity and land with less-than-lethal forces. (IIRC they tested a 9 mm and a rifle round - either a thirty aught-six or a military round like a 7.62mm NATO round or a 5.56mm M-16/AR-16 bullet.) But they also consulted an emergency room doctor who verified that in rare cases serious wounds and even deaths were caused by bullets fire "in the air".
I think the answer to the OP's question is "No, a bullet fired straight up into the air will not return at its initial muzzle velocity, and will not strike with a fatal impact, but that SOME bullets fire 'in the air' at an angle can inflict fatal wounds."
Either way, shooting bullets up into the air is a pretty stupid thing to do.
Regards,
Joe