Suppose You Own a Risky Asset with an Expected Return

question 54

Multiple Choice

Suppose you own a risky asset with an expected return of 18.2 percent and a standard deviation of 27.2 percent.If the returns are normally distributed,the approximate probability of losing 9 percent or more in a single year is ________ percent.

• A).26
• B)4.56
• C)15.87
• D)31.74
• E)2.28

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Definitions:

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience, often manifesting as bias or discrimination.

Stigma

A mark of disgrace or infamy; a sign of severe social disapproval of personal characteristics or beliefs that are perceived to be against cultural norms.

Title VII

A provision of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Union Membership

The state of being a member of an organization (union) that represents employees' interests, such as wages, working conditions, and benefits.