A Portfolio with an Expected Return of 12 Percent Has

question 54

Multiple Choice

A portfolio with an expected return of 12 percent has an annual standard deviation of 21 percent. What is the smallest expected loss over the next year with a probability of 1 percent?

• A) -39.27%
• B) -42.86%
• C) -48.24%
• D) -36.85%
• E) -45.16%

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Definitions:

Z-Score

A measure indicating the number of standard deviations an element is from the mean.

Loads

In engineering and physics, it refers to the forces, pressures, or stresses that are applied to a structure or component.

Attendance

The act of being present at a place or event.

Hockey Team

A group of players participating in the sport of hockey, where each member has a specific role, such as forward, defenseman, or goalie, contributing to the team's attempts to win matches.