Suppose You Own a Risky Asset with an Expected Return

Multiple Choice

Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of 18.2 percent.If the returns are normally distributed,the most accurate probability that the stock will return more than 50 percent in any one given year is best described as less than:

A) .025 percent.
B) .05 percent.
C) 2.5 percent.
D) .01 percent.
E) 1.25 percent.