A Stock Has an Expected Rate of Return of 13

question 9

Multiple Choice

A stock has an expected rate of return of 13.9 percent and a standard deviation of 23.3 percent.Which one of the following best describes the probability that this stock will lose more than 1/3 of its value in any one year?

• A)Less than 0.1%
• B)Approximately 2.25%
• C)Approximately 1.13%
• D)Less than 0.26%
• E)Approximately 4.66%

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Definitions:

Projective

Referring to techniques or tests in psychology that assess individuals' personality or emotional state through their interpretation of ambiguous stimuli.

Assessment Technique

A method or tool used to evaluate the performance, skill level, or knowledge of an individual or group.

Personality Inventory

A questionnaire designed to assess various aspects of a person's character, temperament, and psychological preferences.

MMPI-2

A comprehensive psychological test that assesses personality traits and psychopathology to aid in diagnosing mental disorders.