A Stock Has a Standard Deviation of Daily Returns of 1

question 40

Multiple Choice

A stock has a standard deviation of daily returns of 1 percent. It wants to determine the lower boundary of its probability distribution of returns, based on 1.65 standard deviations from the expected outcome. The stock's expected daily return is .2 percent. The lower boundary is

• A)-1.45 percent.
• B)-1.85 percent.
• C)0 percent.
• D)-1.65 percent.

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Definitions:

Sweden

A Scandinavian country located in Northern Europe, known for its advanced social welfare system, high standard of living, and strong environmental policies.

Cultural Value

A principle or belief that is widely accepted and upheld within a particular society or community, shaping its culture and behavior.

Femininity

A cultural dimension that values traits traditionally associated with female roles, such as caregiving, community, and quality of life.

Long-Term Orientation

A cultural value that emphasizes the virtues of planning for the future and delaying gratification.