If the Standard Deviation of Annual Returns on the Asset

question 67

Multiple Choice

If the standard deviation of annual returns on the asset is 30% and the interval is a year, then the downside change is equal to :

• A) 26%
• B) 53.6%
• C) 33.0%
• D) 38.7%

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Definitions:

Sampling Distribution

The probability distribution of a given random-sample-based statistic if you repeatedly sample from the same population.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, influencing the shape and range of possible outcomes.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a sample estimate of a parameter.

Contingency Table

A table often used in statistics to display the frequency distribution of variables, enabling a visual inspection of the relationship between them.