Your Portfolio Has a Standard Deviation of 12

question 2

Multiple Choice

Your portfolio has a standard deviation of 12.3 percent and an average return of 9.6 percent.You have a 5 percent probability of losing ________ percent or more in any given year.

• A) −33.79
• B) −31.54
• C) −12.59
• D) −10.63
• E) −3.34

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Definitions:

Observational Learning

The process of observing and imitating the behavior of others.

Self-regulation

The ability of an individual to manage their own thoughts, feelings, and behaviors to achieve long-term goals.

Reinforce Themselves

The process whereby actions or behaviors are naturally strengthened or encouraged without external intervention.

Self-regulation

The ability to monitor and control one's own behavior, emotions, or thoughts, adjusting them in accordance with demands and goals.