A Portfolio Has a Current Value of $1000 $X$ Is Distributed Normally with Mean 100 and Standard Deviation 100

question 10

Multiple Choice

A portfolio has a current value of $1000. The annual profit $X$ is distributed normally with mean 100 and standard deviation 100. What is the probability that the portfolio will be worth less than 800 after one year?

• A) 0.0014
• B) 0.0062
• C) 0.0228
• D) 0.1587

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Definitions:

Lifetime Learning Credit

A tax credit that provides financial assistance for post-secondary education by allowing taxpayers to deduct a percentage of their tuition and fees.

Modified AGI

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Married Filing Joint

A filing status on U.S. tax returns allowing married couples to combine their incomes, deductions, and credits on a single tax return, potentially leading to tax benefits.

American Opportunity Tax Credit

A credit that allows qualifying students or their parents to reduce their federal income tax based on education expenses paid.