Sarah's Portfolio Has an Expected Annual Return at 10%, with an Annual

Multiple Choice

Sarah's portfolio has an expected annual return at 10%, with an annual standard deviation at 12%. If her investment returns are normally distributed, then in any given year Sarah has an approximate ________.

A) 50% chance that the actual return will be greater than 12%
B) 68% chance that the actual return will fall within -2% and 22%
C) 68% chance that the actual return will fall within -20% and 22%
D) 95% chance that the actual return will fall within -2% and 24%