A Stock Has a Standard Deviation of Daily Returns of 1

question 30

Multiple Choice

A stock has a standard deviation of daily returns of 1 percent. It wants to determine the lower boundary of its probability distribution of returns, based on 1.65 standard deviations from the expected outcome. The stock's expected daily return is .2 percent. The lower boundary is

• A)- 1.45 percent.
• B)- 1.85 percent
• C)0 percent.
• D)- 1.65 percent.

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