You Are Introduced to an Investment That Has an Expected

question 54

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:

Enthusiasm

A feeling of energetic interest in a particular subject or activity and the eagerness to be involved in it.

Uncertainties

Situations or conditions where the outcomes are unpredictable or unknown.

High Performance Team

A high performance team refers to a group of individuals who are highly focused on their goals and achieve superior results through collaboration, commitment, and excellent interpersonal dynamics.

Timely Decisions

The action of making choices or judgments at the right moment to avoid delay and capitalize on effectiveness.