A Bond Has an Average Return of 6

question 17

Multiple Choice

A bond has an average return of 6.3 percent and a standard deviation of 3.8 percent.What range of returns would you expect to see 68 percent of the time on this security?

• A)-1.30 percent to 13.9 percent
• B)-1.30 percent to 10.1 percent
• C)2.5 percent to 7.8 percent
• D)2.5 percent to 10.1 percent
• E)2.5 percent t0 13.9 percent

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Definitions:

Duodenal Gland

Small gland that opens into the base of intestinal glands; secretes a mucoid alkaline substance.

Duodenal Mucosa

The lining of the duodenum, which contains cells responsible for the secretion of enzymes necessary for digestion.

Acidic Chyme

The partially digested, acidic food that passes from the stomach to the small intestine.

Parietal Cells

Cells in the stomach lining that secrete hydrochloric acid and intrinsic factor, essential for digestion and B12 absorption respectively.