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:

Estimated Activity Volume

The projected amount of activity or production, measured in units, hours, or any other quantifiable terms, expected for a certain period.

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.

Plantwide Overhead Rate

A single predetermined overhead rate that is used throughout a plant.