Your Portfolio Has an Annualized Standard Deviation of 15

question 76

Multiple Choice

Your portfolio has an annualized standard deviation of 15.6% and average annual return of 12.8%. You have a 5% probability of losing ________ or more in any given year. Note: the 5% probability level has a "Z" value of 1.645.

• A) 18.63%
• B) 14.00%
• C) 12.86%
• D) 10.34%
• E) 9.51%

---

Definitions:

Psychology Exam

A test or assessment aimed at evaluating knowledge, understanding, and application of psychological concepts.

Highest Grade

The maximum achievable score or level of achievement in an academic evaluation or classification system.

Psychotherapy

A therapeutic treatment involving psychological methods, typically involving conversations with a mental health professional, to help a person change behavior and overcome problems in desired ways.

Gradual Process

A slow progression or development that occurs over time.