You Have a Portfolio Which Has an Average Return of 10.3

question 71

Multiple Choice

You have a portfolio which has an average return of 10.3 percent.In any given year,you have a 2.5 percent probability of earning either a zero or a negative annual return.What is the approximate standard deviation of your portfolio?

• A)5.26 percent
• B)6.43 percent
• C)6.94 percent
• D)7.60 percent
• E)8.14 percent

---

Definitions:

Discharge

The completion, termination, or fulfillment of a legal obligation or duty, such as the discharge of a debt or the formal dismissal of an employee.

Debtor

An individual or organization that owes money or services to another entity, known as the creditor.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay their outstanding debts, allowing for the liquidation or reorganization of assets to pay off creditors.

Voidable Preference

A legal term referring to a payment or asset transfer made by a debtor that can be invalidated by a bankruptcy trustee under certain conditions.