Suppose You Own a Risky Asset with an Expected Return

Multiple Choice

Suppose you own a risky asset with an expected return of 18.2 percent and a standard deviation of 27.2 percent.If the returns are normally distributed,the approximate probability of losing 9 percent or more in a single year is ________ percent.

A) .26
B) 4.56
C) 15.87
D) 31.74
E) 2.28