The Mean Change in the Value of a Portfolio of Trading

question 56

Multiple Choice

The mean change in the value of a portfolio of trading assets has been estimated to be 0 with a standard deviation of 20 percent.Yield changes are assumed to be normally distributed. What is the maximum yield change expected if a 98 percent confidence (one-tailed) limit is used?

• A)3.30%.
• B)20.0%.
• C)33.0%.
• D)39.2%.
• E)46.6%.

---

Definitions:

Emerging Markets

Economies in the process of rapid industrialization and exhibiting high rates of growth and investment potential.

Income Pyramid

A graphical representation of the distribution of income across different segments of society, often showing a wide base of low-income individuals and a narrow top of high-income earners.

Base Of The Pyramid

A concept that targets the largest but poorest socio-economic groups in a given population, focusing on providing affordable products and services.

Unmet Needs Trap

A situation where organizations focus on immediate customer needs without anticipating future demands, potentially hindering long-term innovation.