Niles Is Making an Investment with an Expected Return of 12

question 52

Multiple Choice

Niles is making an investment with an expected return of 12 per cent. If the standard deviation of the return is 4.5 per cent, and if Niles is investing $100,000, then what dollar amount is Niles 95 per cent sure that he will have at the end of the year?

• A) $100,000.00
• B) $104,597.50
• C) $116,500.00
• D) $119,402.50

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Definitions:

REBT

Rational Emotive Behavior Therapy is a psychotherapeutic approach designed to assist people in recognizing and changing their irrational beliefs to more logical and reasonable ones.

Discomfort Anxiety

Anxiety or unease stemming from anticipation of discomfort in either physical, emotional, or social situations.

Stressor

Any event, situation, or environmental demand that causes stress to an individual, potentially affecting their mental or physical health.

Behavior

The actions or reactions of an organism, often in response to external stimuli, observable by others.