A Mutual Fund Has Five Equally Likely Outcomes: -5%, 8

question 18

Multiple Choice

A mutual fund has five equally likely outcomes: -5%, 8%, 12%, 15%, and 20%. Calculate the standard deviation of the rate of return. Round your answer to the nearest tenth of a percent.

• A)18.9%
• B)9.5%
• C)0.0%
• D)8.5%

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Definitions:

Impacted

Describes a condition where a substance is tightly packed or an object is wedged firmly in place, making removal difficult.

Femur

The thigh bone of the leg.

Inadequate Calcium

Insufficient levels of calcium in the body, which can lead to weakened bones and other health issues.

Kyphosis

A convex curvature of the spine; humpback.