An Equity Has an Expected Rate of Return of 8

question 47

Multiple Choice

An equity has an expected rate of return of 8.3% and a standard deviation of 6.4%.Which one of the following best describes the probability that this equity will lose 11% or more in any one given year?

• A)less than 0.5%
• B)less than 1.0%
• C)less than 1.5%
• D)less than 2.5%
• E)less than 5%

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Definitions:

Nonverbal Cues

Communication signals that do not involve words, such as body language, gestures, and facial expressions.

Oral, In-Person

Communication that occurs through spoken words in a face-to-face setting.

Vocal Inflection

The variation in pitch, tone, and volume of the voice that can affect the meaning of spoken words.

Visual Medium

Any form of communication that uses visual elements, such as images, videos, or graphics, to convey information or messages.