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

---

Definitions:

Inflationary Spiral

A situation where rising wages lead to increased demand and prices, which then lead to higher wages and prices again, creating a continuous upward price spiral.

Unemployment

The condition of not having a job, describing individuals actively seeking work but unable to find employment.

Affirmative Action

A set of policies aimed at increasing opportunities for historically excluded groups in education and employment by considering factors including race and gender.

Quotas

Are limits set by governments on the quantity of a product that can be imported or exported within a certain timeframe, used to regulate trade and protect domestic industries.