A Portfolio Has a Standard Deviation of 15

question 90

Multiple Choice

A portfolio has a standard deviation of 15.8 percent and an average return of 14.2 percent.What loss is associated with a 2.5 percent probability?

• A) −12.03 percent
• B) −14.87 percent
• C) −16.77 percent
• D) −17.38 percent
• E) −19.36 percent

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Definitions:

Highest Standard

Refers to the top or most rigorous level of quality or achievement that can be reached in a specific field or activity.

Real Property

Land and anything permanently attached to it, such as buildings, fences, and natural features, recognized as real estate in legal terms.

Probate Court

A specialized court that deals with the distribution of a deceased person's estate, including the validation of wills and resolution of contested issues.

Decedent's Estate

The total property, assets, and debts left behind by an individual at the time of their death.