Sarah's Portfolio Has an Expected Annual Return at 10%, with an Annual

question 8

Multiple Choice

Sarah's portfolio has an expected annual return at 10%, 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 12%
• B) 68% chance that the actual return will fall within -2% and 22%
• C) 68% chance that the actual return will fall within -20% and 22%
• D) 95% chance that the actual return will fall within -2% and 24%

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Definitions:

Self-help Groups

Peer-led organizations where members share common experiences, challenges, or conditions to provide mutual support and aid.

Eating Disorders

Psychological disorders characterized by abnormal or disturbed eating habits that negatively affect a person's health and well-being.

Coping Effectively

The ability to manage stressful situations or challenges in a healthy manner that reduces negative emotional impact and promotes well-being.

Stigmatized Illnesses

Conditions that are devalued or discriminated against in society due to misconceptions, prejudices, or fear.