The Mean Change in the Value of a Portfolio of Trading

question 77

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 95 percent confidence (one-tailed) limit is used?

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

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Definitions:

Conversion Symptoms

Physical symptoms that occur without a physiological basis, often resulting from psychological conflict or stress.

Conversion Disorder

A mental condition in which a person has blindness, paralysis, or other nervous system symptoms that cannot be explained by medical evaluation.

Spontaneous Self-hypnosis

The natural occurrence of hypnotic-like states without formal induction, often triggered by extreme focus or stress.

Malingering

The act of intentionally feigning illness or incapacity in order to avoid work or responsibility or to gain some form of benefit.