Suppose You Own a Risky Asset with an Expected Return

question 25

Multiple Choice

Suppose you own a risky asset with an expected return of 12% and a standard deviation of 20%. If the returns are normally distributed, the approximate probability of receiving a return greater than 32% is:

• A) 0.67.
• B) 0.33.
• C) 0.05.
• D) 0.02.
• E) 0.16.

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Definitions:

Familiar Culture

The common practices, beliefs, and values that are customary and recognizable within a particular group or society.

Moderate Adaptations

Adjustments made in moderation to accommodate or respond to changes or challenges.

American Ways

American Ways refer to the customs, behaviors, and cultural norms commonly associated with the American society.

Cross-cultural Negotiations

Negotiation processes that involve parties from different cultural backgrounds, requiring awareness and adaptation to cultural differences.