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:

Eating

The act of consuming food to provide nutritional support for the body.

Amygdala

A region of the brain involved in experiencing emotions, especially fear and pleasure.

Eating Behavior

The patterns or habits of eating, including what, when, and how much individuals consume, influenced by biological, psychological, and social factors.

Thirst

The basic sensation prompting the desire to drink liquids, resulting from dehydration or electrolyte imbalances in the body.