An Asset Has an Average Annual Historical Return of 11

question 62

Multiple Choice

An asset has an average annual historical return of 11.6 percent and a standard deviation of 17.8 percent.What range of returns would you expect to see 95 percent of the time?

• A) -41.8 to + 65.0 percent
• B) -34.4 to + 53.6 percent
• C) -24.0 to + 47.2 percent
• D) -6.2 to + 29.4 percent
• E) -5.4 to + 41.0 percent

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Definitions:

Need for Structured Knowledge

Refers to the requirement for organized and systematically arranged information to make it easily understandable and accessible.

Tolerance for Ambiguity

An individual's ability to remain comfortable and composed when faced with unclear, uncertain, or indefinite situations.

Authoritarian Personality

A personality type characterized by a strong adherence to authority, conformity to established norms, and a preference for order and tradition over personal autonomy.

Right-Wing Authoritarianism

A personality and ideological framework characterized by a tendency to submit to authorities, adhere to societal conventions, and aggress against those who dissent or differ.