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

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Definitions:

Archegonium

A female reproductive structure found in ferns, mosses, and some conifers and flowering plants, producing a single egg cell for fertilization.

Sporangium

A spore case, found in plants, certain protists, and fungi.

Xylem

The vascular tissue that conducts water and dissolved minerals in plants.

Phloem

The vascular tissue in plants responsible for transporting sugars and other metabolic products downward from the leaves.