A Portfolio Has an Average Return of 14

question 32

Multiple Choice

A portfolio has an average return of 14.2 percent and a standard deviation of 12.85 percent.Given this,you should expect to lose at least ________ percent on an annual basis once every century.

• A) −19.53
• B) −17.24
• C) −15.69
• D) −1.710
• E) −1.550

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Definitions:

Mutualism

refers to a symbiotic relationship between two different species where both species benefit from the interaction, enhancing each other's growth, survival, or reproduction.

Zooxanthellae

Symbiotic algae that live inside corals and other marine organisms, providing nutrients through photosynthesis, which is essential for reef building.

Chemical Protection

The use of chemical substances to deter predators, parasites, or pathogens.

Coevolution

The process by which two or more species reciprocally affect each other's evolution through natural selection pressures imposed by each on the other.