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