If the Standard Deviation of the Continuously Compounded Returns (σ)On

question 36

Multiple Choice

If the standard deviation of the continuously compounded returns (σ) on a stock is 40%,and the time interval is a year,then the upside change equals:

• A)88.2%.
• B)8.7%.
• C)63.2%.
• D)49.2%.

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Definitions:

Behaviorist

A psychological approach focusing on observable behaviors and external stimuli, neglecting thoughts and feelings.

Cognitive Psychologist

A psychologist who studies how we perceive, think, understand, and remember information.

Physiological Psychologist

A specialist who studies the biological basis of behavior, focusing on the brain's functions and structures and their impact on psychological processes.

Associative Learning

The process by which an individual learns the connection between two stimuli or between a behavior and a consequence.