You Have a Portfolio Which Has an Average Return of 10.3

question 8

Multiple Choice

You have a portfolio which has an average return of 10.3 percent.In any given year,you have a 2.5 percent probability of earning either a zero or a negative annual return.What is the approximate standard deviation of your portfolio?

• A) 5.26 percent
• B) 6.43 percent
• C) 6.94 percent
• D) 7.60 percent
• E) 8.14 percent

---

Definitions:

European Economic System

Refers to the complex set of economies of European countries, often associated with the European Union's economic policies and mechanisms for fiscal stability and economic cooperation.

Slave Trade

The historical trading of enslaved Africans, primarily between the 16th and 19th centuries, to the Americas.

Slave Labor

The forced labor of individuals who are owned by others, without the right to refuse work or receive payment, historically practiced in various societies.