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Suppose You Own a Risky Asset with an Expected Return

Question 50

Multiple Choice

Suppose you own a risky asset with an expected return of 12% and a standard deviation of 20%. If the returns are normally distributed,the approximate probability of receiving a return greater than 32% is approximately:


A) 2%.
B) 5%.
C) 16%.
D) 33%.
E) 67%.

Correct Answer:

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