Lester Has a Portfolio with an Average Return of 13

question 67

Multiple Choice

Lester has a portfolio with an average return of 13.5 percent and a standard deviation of 14.5 percent.He has a one percent probability of losing ________ percent or more in any given year.

• A) −33.97
• B) −38.87
• C) −20.23
• D) −5.04
• E) −8.37

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Definitions:

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances, ensuring consistency and predictability in the law.

Legal Code

A systematic collection of laws or statutes that are articulated in a comprehensive manner.

Diplomatic Immunity

The privilege granted to diplomats by which they are not subject to the laws of the host country, ensuring their safety and effectiveness.

Rule of Law

The principle that all people and institutions are subject to and accountable to law that is fairly applied and enforced.