If the Standard Deviation of the Annual Returns (σ )

question 55

Multiple Choice

If the standard deviation of the annual returns (σ ) on the asset is 40%, and the time interval is a year, then the upside change is equal to:

• A) 88.2%
• B) 8.7%
• C) 63.2%
• D) 49.18%

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Definitions:

International Trade

The exchange of goods and services between countries, which allows for greater diversity of products, lower prices, and increased economic efficiency.

Trade Adjustment Assistance Act

A U.S. law passed in 2002 that provides cash assistance, education and training benefits, health care subsidies, and wage subsidies (for persons age 50 or older) to workers displaced by imports or relocations of U.S. plants to other countries.

Displaced Workers

Individuals who have lost their jobs due to economic changes, technological advancements, or other factors outside their control.

Export Markets

Overseas markets where goods and services produced in one country are sold.