A Portfolio Has an Annual Expected Return of 10 Percent

question 78

Multiple Choice

A portfolio has an annual expected return of 10 percent and a standard deviation of 18 percent. What is the smallest expected loss over the next two years with a probability of 2.5 percent?

• A) -29.89%
• B) -41.63%
• C) -37.21%
• D) -39.06%
• E) -32.19%

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Definitions:

Organise Resources

The process of efficiently and effectively deploying and allocating organizational assets, including financial, human, and material resources.

Allocate Resources

The act of distributing available assets, such as time, money, and manpower, among various projects or departments to achieve organizational goals.

Strategic Management

The formulation, implementation, and evaluation of actions and decisions that will enable an organization to achieve its long-term objectives.

Environmental Scanning

Environmental scanning is the process of systematically gathering, analyzing, and managing external information about factors that could impact an organization's ability to succeed.