Leah Merryweather Stock Has an Expected Rate of Return of 12.5

question 196

Multiple Choice

Leah Merryweather stock has an expected rate of return of 12.5% and a standard deviation of 26.3%. Which one of the following best describes the probability that this stock will lose 40% or more in any one given year?

• A) 0.5%
• B) 1.0%
• C) 2.5%
• D) 5.0%
• E) 16.0%

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Definitions:

Daily Wage

The amount of money paid to an employee for a day's work.