Suppose You Own a Risky Asset with an Expected Return

question 1

Multiple Choice

Suppose you own a risky asset with an expected return of 16.3 percent and a standard deviation of 31.3 percent.If the returns are normally distributed,the approximate probability of losing 15 percent or more in a single year is ____ percent.

• A)2.28
• B)4.56
• C)15.87
• D)31.74
• E).26

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