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%

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Definitions:

Genetic Material

Molecules within living cells that carry genetic information, primarily DNA or RNA, which guide the development, functioning, and reproduction of organisms.

Monozygotic (MZ) Twins

Twins that derive from a single zygote that has split into two; identical twins. Each MZ twin carries the same genetic code.

Dizygotic (DZ) Twins

Twins that derive from two zygotes; fraternal twins.

Canalization

A concept in developmental biology referring to the tendency of an organism to maintain developmental stability amidst genetic and environmental variations.