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A Stock Has an Expected Rate of Return of 13

Question 14

Multiple Choice

A stock has an expected rate of return of 13 percent and a standard deviation of 21 percent.Which one of the following best describes the probability that this stock will lose at least half of its value in any one given year?


A) 0.1 percent
B) 0.5 percent
C) 1.0 percent
D) 2.5 percent
E) 5.0 percent

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