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A Stock Has an Expected Rate of Return of 13

Question 7

Multiple Choice

A stock has an expected rate of return of 13.9 percent and a standard deviation of 23.3 percent.Which one of the following best describes the probability that this stock will lose more than 1/3 of its value in any one year?


A) Less than 0.1%
B) Approximately 2.25%
C) Approximately 1.13%
D) Less than 0.26%
E) Approximately 4.66%

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