You Have a Portfolio Which Has an Average Return of 10.3

question 56

Multiple Choice

You have a portfolio which has an average return of 10.3%. In any given year, you have a 2.5% probability of earning either a zero or a negative annual return. What is the approximate standard deviation of your portfolio?
$\begin{array}{cr}\text { Probability } & \text { "z" value } \\\text { of loss } & \\1.0\% & 2.326 \\2.5 & 1.960 \\5.0 & 1.645\end{array}$

• A)5.26%
• B)6.43%
• C)6.94%
• D)7.60%
• E)8.14%

---

Definitions:

Media Violence

The depiction of violent acts in media outlets, such as television, movies, video games, and the internet, and its potential impact on behavior.

Aggression

Actions aimed at causing injury or frightening other individuals.

Smoking and Cancer

The established link between tobacco use and the increased risk of developing cancerous conditions.

Coping Strategy

Methods or techniques used by individuals to handle, manage, or adapt to stress and challenging situations in their lives.