A Stock Has an Annual Standard Deviation of 14

question 93

Multiple Choice

A stock has an annual standard deviation of 14.1 percent and an expected annual return of 11.5 percent.What is the smallest expected loss for the next 6 months given a probability of 2.5 percent?

• A) −8.90 percent
• B) −13.79 percent
• C) −14.57 percent
• D) −15.38 percent
• E) −16.67 percent

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