An Equity Has an Expected Rate of Return of 8

question 23

Multiple Choice

An equity has an expected rate of return of 8.3% and a standard deviation of 6.4%.Which one of the following best describes the probability that this equity will lose 11% or more in any one given year?

• A)Less than 0.5%.
• B)Less than 1.0%.
• C)Less than 1.5%.
• D)Less than 2.5%.
• E)Less than 5%.

---

Definitions:

Wounded

Suffering injury or harm, either physically or emotionally.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for rest and digestion, often referred to as the "rest and digest" system.

Brake

A device used for slowing or stopping a moving vehicle, typically by applying pressure to the wheels.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.