Suppose You Own a Risky Asset with an Expected Return

question 50

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 approximately:

• A) 2%.
• B) 5%.
• C) 16%.
• D) 33%.
• E) 67%.

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Definitions:

Amoral Managers

Amoral managers are those who do not consider the ethical implications of their decisions, focusing solely on business objectives without regard for moral principles.

Equal Access

The principle that everyone should have the same opportunities to access services, resources, or rights without discrimination.

Ethical Principles

The foundational guidelines for moral conduct that help individuals discern right from wrong in their decisions and actions.

Behave Ethically

Acting in a manner consistent with moral principles, standards, and values.