A Stock Has an Expected Rate of Return of 13

question 14

Multiple Choice

A stock has an expected rate of return of 13 percent and a standard deviation of 21 percent.Which one of the following best describes the probability that this stock will lose at least half of its value in any one given year?

• A)0.1 percent
• B)0.5 percent
• C)1.0 percent
• D)2.5 percent
• E)5.0 percent