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A Stock Has an Expected Rate of Return of 7

Question 286

Multiple Choice

A stock has an expected rate of return of 7.9% and a standard deviation of 6.2%. Which one of the following best describes the probability that this stock will lose more than 4.5% in any one given year?


A) less than 0.5%
B) less than 1.0%
C) less than 1.5%
D) less than 2.5%
E) less than 5%

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