Suppose You Own a Risky Asset with an Expected Return

question 50

Multiple Choice

Suppose you own a risky asset with an expected return of 12% and a standard deviation of 20%. If the returns are normally distributed,the approximate probability of receiving a return greater than 32% is approximately:

• A) 2%.
• B) 5%.
• C) 16%.
• D) 33%.
• E) 67%.

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