Your Portfolio Has a Standard Deviation of 12

question 23

Multiple Choice

Your portfolio has a standard deviation of 12.3 percent and an average return of 10.6 percent. You have a 5 percent probability of losing _____ percent or more in any given year.

• A) 33.79
• B) 31.54
• C) 12.59
• D) 9.63
• E) 3.34

---

Definitions:

International Finance Corporation

A member of the World Bank Group focused on private-sector development in less developed countries.

Infrastructure Loans

Financial borrowing intended for the construction, improvement, or maintenance of essential public works like roads, bridges, and utilities.

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries, raise revenue, or regulate trade.

Import Quotas

Restrictions set by a government on the amount of a particular good that can be imported into a country within a given timeframe.