Lester Has a Portfolio with an Average Return of 10 $\begin{array}{cr}\text { Probability } & \text { "z" value } \\\text { of loss } & \\1.0\% & 2.326 \\2.5 & 1.960 \\5.0 & 1.645\end{array}$

question 19

Multiple Choice

Lester has a portfolio with an average return of 10.8% and a standard deviation of 12.3%. He has a 1% probability of losing ________% or more in any given year.
$\begin{array}{cr}\text { Probability } & \text { "z" value } \\\text { of loss } & \\1.0\% & 2.326 \\2.5 & 1.960 \\5.0 & 1.645\end{array}$

• A)33.97
• B)28.33
• C)20.23
• D)17.81
• E)13.92

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Definitions:

Budget

An estimation of revenue and expenses over a specified period.

Isocost Line

Graph showing all possible combinations of labor and capital that can be purchased for a given total cost.

Input Combinations

The various mixes of inputs or factors of production a firm can use to produce a given level of output.

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and changeable expenses.