A Portfolio Has a Standard Deviation of 15

question 90

Multiple Choice

A portfolio has a standard deviation of 15.8 percent and an average return of 14.2 percent.What loss is associated with a 2.5 percent probability?

• A) −12.03 percent
• B) −14.87 percent
• C) −16.77 percent
• D) −17.38 percent
• E) −19.36 percent

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Definitions:

Retrieval Cue

Stimuli or prompts that aid the recall of information stored in memory.

Chunk

In psychology, a unit of information organized in memory, often used to enhance recall through techniques like chunking.

Rehearsal

The practice of repeatedly going over material in one's mind or through behaviors, to strengthen memory or skill.

Hypnosis

A highly relaxed, suggestible state of mind in which a person is likely to feel that his actions and thoughts are happening to him rather than being produced voluntarily.