Over a Number of Years, the Average Annual Rate of Return

question 112

Multiple Choice

Over a number of years, the average annual rate of return for Fidelity's Blue Chip Value mutual fund has been .08 with a standard deviation of .04.Assume annual returns are approximately normally distributed around the average rate.Using this historical information as the basis for your calculations, what is the probability of loss over the next year if you put money into this fund?

• A).0130
• B).001
• C).0524
• D).0228
• E).0771

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Definitions:

Automatic Thoughts

Immediate, involuntary thoughts that occur in response to a situation, often based on underlying beliefs.

Artifact Theory

A concept suggesting that observed differences in psychological testing across cultural or racial groups are the result of the tests themselves, not actual differences in the groups.

Rumination Theory

A theory suggesting that continually thinking about problems or negative thoughts without taking action can lead to or worsen depression.

Cyclothymic Disorder

A mood disorder characterized by chronic fluctuation between mild depressive and hypomanic episodes, without reaching the severity of major depression or full-blown mania.