Lester Has a Portfolio with an Average Return of 13

question 47

Multiple Choice

Lester has a portfolio with an average return of 13.5 percent and a standard deviation of 22.5 percent.He has a one percent probability of losing ________ percent or more in any given year.

• A) −33.97
• B) −38.94
• C) −20.23
• D) −5.04
• E) −8.37

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Definitions:

Salary

A fixed amount of wages paid to an employee on a regular basis for a prescribed period of time, for example, weekly or monthly.

Fixed Amount

A specific, unchanging sum of money that is agreed upon for transactions, payments, or financial obligations.

Benefits

Sometimes known as fringe benefits.

Paid Time Off

A workplace policy where employees are provided with a certain amount of days for which they are paid while being allowed to take time off from work.