Sarah's Portfolio Has an Expected Annual Return at 8%, with an Annual

question 10

Multiple Choice

Sarah's portfolio has an expected annual return at 8%, with an annual standard deviation at 12%. If her investment returns are normally distributed, then in any given year Sarah has an approximate ________.

• A) 50% chance that the actual return will be greater than 8%
• B) 68% chance that the actual return will fall within 4% and 20%
• C) 68% chance that the actual return will fall within -20% and 20%
• D) 95% chance that the actual return will fall within -4% and 28%

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Definitions:

Total Parenteral Nutrition (TPN)

A method of feeding that bypasses the gastrointestinal tract, providing nutrition directly into the bloodstream.

Hyperalimentation

A medical method of providing nutrients directly into the bloodstream, especially for patients who cannot eat or absorb nutrients through traditional means.

Infused

The process of introducing a substance into a body, usually via injection or through the bloodstream, such as with fluids or medication.

Allen Test

A medical procedure used to evaluate the arterial blood flow to the hand, ensuring patency before puncturing the radial artery, for example, for blood gas analysis.