An Investment Consultant Tells Her Client That the Probability of Making

Multiple Choice

An investment consultant tells her client that the probability of making a positive return with her suggested portfolio is 0.90. What is the risk, measured by standard deviation that this investment manager has assumed in her calculation if it is known that returns from her suggested portfolio are normally distributed with a mean of 6%?

A) 1.28%
B) 4.69%
C) 6.00%
D) 10.0%