The Mean Change in the Value of a Portfolio of Trading

question 23

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 95 percent confidence (one-tailed) limit is used?

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

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Definitions:

Psychoanalysis

A therapeutic approach that focuses on exploring unconscious desires and conflicts as a means of understanding and resolving psychological disturbances.

Repression

A defense mechanism in which distressing thoughts and memories are unconsciously forced from the conscious mind to the unconscious.

Therapy

The treatment of psychological or emotional disorders and difficulties through the use of psychological techniques designed to encourage communication of conflicts and insight into problems.

Transference

A psychoanalytic concept where emotions and desires originally associated with one person are unconsciously redirected onto another.