Lester Has a Portfolio with an Average Return of 12

question 47

Multiple Choice

Lester has a portfolio with an average return of 12.8 percent and a standard deviation of 9.1 percent. He has a one percent probability of losing _____ percent or more in any given year.

• A) 33.97
• B) 38.87
• C) 20.67
• D) 5.04
• E) 8.37

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Definitions:

Resting Potential

Membrane potential of a neuron at rest.

Millivolts

A unit of electric potential or electromotive force equal to one thousandth of a volt, commonly used in measuring electrical potentials in cells and batteries.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Reflexes

Involuntary and nearly instantaneous movements in response to stimuli, as part of the body's protective mechanism.