Leah Merryweather Stock Has an Expected Rate of Return of 12.5

question 139

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%

---

Definitions:

Acute Respiratory Disease

A sudden onset of respiratory illness, such as pneumonia or acute bronchitis, characterized by symptoms like coughing and shortness of breath.

IC

Integrated Circuit, a set of electronic circuits on one small flat piece (or "chip") of semiconductor material, usually silicon.

Chronic Obstructive Pulmonary Disease

A group of lung diseases, including emphysema and chronic bronchitis, that block airflow and make breathing difficult.

Oxygen

A chemical element critical for respiration and energy production in living organisms, symbol O.