A Portfolio Has a 3-Year Standard Deviation of 18

question 34

Multiple Choice

A portfolio has a 3-year standard deviation of 18.1 percent.What is the one-year standard deviation?

• A) 6.39 percent
• B) 8.69 percent
• C) 10.45 percent
• D) 11.80 percent
• E) 12.33 percent

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Definitions:

Avoidance

A behavioral response aimed to prevent an unpleasant outcome or stimulus, often developed as a coping mechanism in both humans and animals.

Feared Stimulus

A specific object, situation, or activity that elicits a strong fear response due to conditioning or traumatic experiences.

Exposure

In psychology, a treatment method aimed at reducing fear and anxiety by gradually and repeatedly presenting the feared object or context without any danger.