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An Equity Has an Expected Rate of Return of 8

Question 23

Multiple Choice

An equity has an expected rate of return of 8.3% and a standard deviation of 6.4%.Which one of the following best describes the probability that this equity will lose 11% or more 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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