The Return on Your Portfolio Over the Last 5 Years

question 18

Multiple Choice

The return on your portfolio over the last 5 years were -5%, 20%, 0%, 10% and 5%. What was the standard deviation of your return? What is your best guess as to next year's return?

• A) 2.74%; 6.00%.
• B) 5.31%; 5.65%.
• C) 9.62%; 6.00%.
• D) 9.62%; 15.00%.
• E) 12.70%; 20.00%.

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Definitions:

Non-adaptive

Referring to traits or behaviors that do not provide a survival or reproductive advantage to an organism.

Variable Life Insurance

A type of insurance policy that does not allow for the premium or minimum coverage on one’s life to change but allows one to switch the savings from among money markets or various forms of stock.

Universal Life Insurance

A type of insurance policy that is flexible and allows one to raise or reduce premiums and the amount of coverage on one’s life.

Term Life Insurance

A type of insurance policy covering the insured for a fixed period of time (e.g., 10 or 20 years). Premiums are usually lower for a greater amount of coverage than with other types of life insurance.