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:

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a long-term behavior pattern that violates the rights of others or major age-appropriate social norms.

Enuresis

A disorder marked by repeated bed-wetting or wetting of one’s clothes.

Bedwetting

The involuntary passing of urine during sleep, medically known as nocturnal enuresis.

Age of Five

Refers to the period in a child's life when they are five years old, a stage important for development in areas like language, motor skills, and social interaction.