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:

Advocate Role

The position of actively supporting, defending, or arguing on behalf of oneself or others.

Worst Scenario

The most adverse or negative outcome that can be envisioned in a given situation, often used in planning or risk assessment.

Adversary

A person, group, or force that opposes or attacks; opponent; enemy.

Advocacy

The act of supporting, defending, or arguing in favor of a cause, policy, or group of people, typically in a political or social context.