A Portfolio Has an Average Return of 15

question 86

Multiple Choice

A portfolio has an average return of 15.3 percent and a standard deviation of 14.5 percent. Given this, you should expect to lose at least _____ percent on an annual basis once every century.

• A) 18.43
• B) 16.24
• C) 14.68
• D) 1.710
• E) 1.550

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Definitions:

Glacial Sediment

Material deposited by glaciers as they move and melt, ranging from fine silt to large boulders.

Lateral Moraine

Sediment carried in and deposited along the sides of a glacier.

Glacier

A large, slow-moving mass of ice, formed from compacted layers of snow, that flows over land.

Terminal Moraine

A mound or ridge of debris deposited at the end of a glacier, marking its furthest advance.