A Stock Has an Expected Rate of Return of 7

question 115

Multiple Choice

A stock has an expected rate of return of 7.9% and a standard deviation of 6.2%. Which one of the following best describes the probability that this stock will lose more than 4.5% 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%

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Definitions:

Blacks

A term referring to individuals and groups of African descent, often used within the context of discussing racial identity, experiences, and issues in societies.

Latinos

People from or with ancestors from Latin America, often distinguished by their cultural, linguistic, or ancestral ties.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its large size and diversity.

White Supremacist

A belief system that promotes the superiority of white people over people of other racial backgrounds.