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:

Madonna

An American singer, songwriter, and actress, recognized for her continual reinvention in music and visual presentation, and has been referred to as the "Queen of Pop."

1% Rule

A principle suggesting that in online communities, only 1% of users actively create content, while the majority lurk or consume content without contributing.

Online Participation

Engagement or involvement in activities or discussions on the internet, ranging from social media interaction to contributing to online forums.

Content

The information, experiences, and objects that are produced for viewers, readers, or users to engage with through various media.