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An Equity Has an Expected Rate of Return of 8

Question 47

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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