An Asset Has an Average Annual Historical Return of 11

question 62

Multiple Choice

An asset has an average annual historical return of 11.6 percent and a standard deviation of 17.8 percent.What range of returns would you expect to see 95 percent of the time?

• A) -41.8 to + 65.0 percent
• B) -34.4 to + 53.6 percent
• C) -24.0 to + 47.2 percent
• D) -6.2 to + 29.4 percent
• E) -5.4 to + 41.0 percent

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Definitions:

Common Currency

A currency that is used by several countries, facilitating easier trade and economic stability within those regions; the Euro is a well-known example.

European Union

A political and economic union of 27 member states that are located primarily in Europe, aimed at promoting integration and facilitating a single market.

European Union

is a political and economic union of 27 member states that are located primarily in Europe, committed to regional integration, characterized by the adoption of common policies and a single market.

Potential Consumers

are individuals who have shown interest or possess characteristics that make them likely to purchase a product or service but have not yet become actual customers.