If the Standard Deviation of the Continuously Compounded Returns on the Asset

question 64

Multiple Choice

If the standard deviation of the continuously compounded returns on the asset is 30 percent and the interval is a year, then the downside change is equal to

• A)−26 percent.
• B)−54 percent.
• C)−33 percent.
• D)−39 percent.

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Definitions:

Net Exports

The difference between a country's total value of exports and total value of imports.

Globalization

Globalization describes the process by which businesses or other organizations develop international influence or start operating on an international scale.

Exploited

Exploited describes a situation where individuals or groups are taken advantage of unfairly for others' benefit, often under conditions that undermine their rights or dignity.

Modern Economies

Economic systems that are characterized by complex financial markets, significant levels of investment in technology, and interconnected global trade relationships.