What Is the Standard Deviation of a Security Which Has

question 47

Multiple Choice

What is the standard deviation of a security which has the following expected returns?

• A) 7.48 percent
• B) 7.61 percent
• C) 7.67 percent
• D) 7.82 percent
• E) 7.91 percent

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Definitions:

Z-score

A measurement of how many standard deviations a data point is from the mean of a data set.

Position

In a general sense, the location or placement of an object or entity; in data analysis, it might refer to the rank or order of a data point within a dataset.

Area

The extent or measurement of a surface or piece of land.

Standard Normal Random Variable

A type of random variable with a mean of 0 and a standard deviation of 1, used in Z-tests.