You Have a Portfolio Which Has an Average Return of 12.6

question 29

Multiple Choice

You have a portfolio which has an average return of 12.6 percent. In any given year, you have a 2.5 percent probability of earning either a zero or a negative annual return. What is the approximate standard deviation of your portfolio?

• A) 5.44 percent
• B) 6.43 percent
• C) 6.94 percent
• D) 7.60 percent
• E) 8.14 percent