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:

Rudimentary Language Skills

Basic abilities in understanding and using language, usually referring to the initial stages of language acquisition.

Symbolic Aspects

The representational features or meanings that objects, actions, or terms hold beyond their literal, tangible dimensions.

Linguistic Relativity Hypothesis

The hypothesis that a language's structure can shape its speakers' perception of reality or thought processes.

Linguistic Relativity Hypothesis

A principle suggesting that the structure of a language influences its speakers' worldview or cognition, and thus people's perceptions are relative to their spoken language.