If the Standard Deviation of Annual Returns on the Asset

question 69

Multiple Choice

If the standard deviation of annual returns on the asset is 20% and the interval is half a year, then the downside change is equal to:

• A) 37.9%
• B) 19.3%
• C) 20.1%
• D) 13.2%

---

Definitions:

Investment Centre Manager

An individual responsible for overseeing a division or unit of a business that directly controls its investments and related returns.

Revenue Centre Manager

An individual responsible for generating revenue within a particular segment or area of a business, focusing on sales and marketing efforts.

Goal Congruence

The alignment of individual objectives and organizational goals to ensure that all efforts contribute to the overall success.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving aspects of psychology, economics, and management.