Suppose You Own a Risky Asset with an Expected Return

question 35

Multiple Choice

Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of 18.2 percent.If the returns are normally distributed,the most accurate probability that the stock will return more than 50 percent in any one given year is best described as less than:

• A).025 percent.
• B).05 percent.
• C)2.5 percent.
• D).01 percent.
• E)1.25 percent.

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Definitions:

Y Chromosome

A sex chromosome that is typically present in male organisms, contributing to male sex determination and related characteristics.

Chromosomes

Threadlike structures made of DNA molecules that carry genetic information in the form of genes.

X Chromosome

One of the two sex chromosomes, X and Y, with the X chromosome carrying a significant number of genes essential for many bodily functions and characteristics.

Genetic Inheritance

The transmission of genetic information from parents to their offspring through genes.