You Are Introduced to an Investment That Has an Expected

question 20

Multiple Choice

You are introduced to an investment that has an expected return of 20% equal to the standard deviation of the distribution of returns.What is the probability that the investment will have a return less than 20% in the first year? Assume a normal distribution.

• A) 0%
• B) 50%
• C) 68%
• D) not enough information to determine

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Definitions:

Account Number Order

The sequence or arrangement of account numbers, often used in organizing financial records or transactions for easy access and reference.

Journal

A detailed record where all financial transactions are initially recorded, chronologically, before being posted to ledger accounts.

Account Balances

The total amount of money in a financial account, calculated by adding all deposits and deducting any withdrawals.

Basic Format

Basic Format in the context of accounting and finance often refers to a standard or simplified way of presenting financial statements or data.