The Mean Change in the Value of a Portfolio of Trading

question 56

Multiple Choice

The mean change in the value of a portfolio of trading assets has been estimated to be 0 with a standard deviation of 20 percent.Yield changes are assumed to be normally distributed. What is the maximum yield change expected if a 98 percent confidence (one-tailed) limit is used?

• A)3.30%.
• B)20.0%.
• C)33.0%.
• D)39.2%.
• E)46.6%.

---

Definitions:

Beriberi

A nutritional deficiency disease caused by a lack of thiamine (vitamin B1) in the diet, affecting the cardiovascular and nervous systems.

Proteins

Essential macromolecules made of amino acids that perform a wide range of functions within organisms, including catalyzing metabolic reactions and supporting cell structure.

Cofactors

Non-protein chemicals that assist enzymes in catalyzing reactions, essential for enzyme activity.

Osmolarity

A measure of the solute concentration per liter of solution, commonly used to describe the body fluids' concentration.