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Suppose You Own a Risky Asset with an Expected Return

Question 1

Multiple Choice

Suppose you own a risky asset with an expected return of 16.3 percent and a standard deviation of 31.3 percent.If the returns are normally distributed,the approximate probability of losing 15 percent or more in a single year is ____ percent.


A) 2.28
B) 4.56
C) 15.87
D) 31.74
E) .26

Correct Answer:

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