A Stock Has an Expected Rate of Return of 8

question 82

Multiple Choice

A stock has an expected rate of return of 8.3% and a standard deviation of 6.4%. Which one of the following best describes the probability that this stock will lose 11% or more in any one given year?

• A) less than 0.5%
• B) less than 1.0%
• C) less than 1.5%
• D) less than 2.5%
• E) less than 5%