An Investment Consultant Tells Her Client That the Probability of Making

question 96

Multiple Choice

An investment consultant tells her client that the probability of making a positive return with her suggested portfolio is 0.90.What is the risk,measured by standard deviation that this investment manager has assumed in his calculation if it is known that returns from her suggested portfolio are normally distributed with a mean of 6%?

• A) 1.28%
• B) 4.69%
• C) 6.00%
• D) 10.0%

---

Definitions:

Psychological Disorders

Mental health conditions characterized by disrupting thought patterns, emotions, or behaviors.

Heredity

The passing of traits from parents to offspring through genes.

Environment

The sum of all external conditions and influences affecting the life and development of organisms, including natural, social, and built environments.

Stubborn Personality

A personality trait characterized by a persistent refusal to change thoughts, behaviors, or attitudes despite external pressure or evidence.