A Stock Has a Standard Deviation of Daily Returns of 3

question 28

Multiple Choice

A stock has a standard deviation of daily returns of 3 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 .1 percent. The lower boundary is

• A)-1.65 percent.
• B)-3.00 percent.
• C)-4.85 percent.
• D)-5.05 percent.

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Definitions:

Expected Gains

Anticipated benefits or profits that are expected from an investment, project, or decision.

Total Wage Bill

The total amount of money paid by an employer to its employees as wages.

Domestic Output

The total value of all goods and services produced within the borders of a nation over a specific period of time.

Pre-migration

The period or processes occurring before the migration of individuals or groups from one place to another.