A Security with Normally Distributed Returns Has an Annual Expected

question 36

Multiple Choice

A security with normally distributed returns has an annual expected return of 18% and standard deviation of 23%. The probability of getting a return between -28% and 64% in any one year is ________.

• A) 68.26%
• B) 95.44%
• C) 99.74%
• D) 100%

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Definitions:

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number, but not in proton number.

Direct Evidence

Evidence that directly proves a fact without needing any inference or reasoning, commonly used in various scientific and legal contexts.

Indirect Evidence

Evidence that does not directly confirm a hypothesis but suggests its possibility through related observations or findings.