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:

Renal Arteries

Blood vessels that supply the kidneys with blood, enabling them to filter waste products from the blood to produce urine.

Kidneys

Bean-shaped organs that filter waste products from the blood, excrete urine, and help regulate blood pressure, electrolyte balance, and red blood cell production.

Supplied

Provided, made available, or furnished with what is necessary or required.

Aortic Arch

The curved portion of the aorta, the largest artery in the body, from which major arteries to the head and upper limbs branch off.