If the Standard Deviation of the Continuously Compounded Returns on the Asset

question 12

Multiple Choice

If the standard deviation of the continuously compounded returns on the asset is 40 percent and the interval is a year, then the downside change is equal to

• A)−27.4 percent.
• B)−53.6 percent.
• C)−33 percent.
• D)−38.7 percent.

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Definitions:

Nonverbal Questions

Queries or prompts that are communicated without the use of spoken or written language, often relying on gestures, facial expressions, or other forms of body language.

Raven's Matrices

A nonverbal group test typically used to measure abstract reasoning and regarded as a nonverbal estimate of fluid intelligence.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a tool for assessing the intelligence and cognitive ability of adults.

WISC-IV

The Wechsler Intelligence Scale for Children-Fourth Edition, a tool used to assess the intellectual ability of children between the ages of 6 and 16.