Sarah's Portfolio Has an Expected Annual Return at 8%,with an Annual

question 84

Multiple Choice

Sarah's portfolio has an expected annual return at 8%,with an annual standard deviation at 12%.If her investment returns are normally distributed,then in any given year Sarah has approximately ______________________.

• A) A 50% chance that the actual return will be greater than 8%
• B) About a 68% chance that the actual return will fall within 4% and 20%
• C) About a 68% chance that the actual return will fall within -20% and 20%
• D) About a 95% chance that the actual return will fall within -4% and 28%.

Understand the fundamental differences between fixed and growth mindsets.

Recognize how attitudes and mindsets influence responses to failure and challenges.

Identify the impact of praise on mindset orientation (growth or fixed).

Appreciate the concept of metacognition and its importance in self-awareness and problem-solving.

---

Definitions:

Discounted Payback

A capital budgeting method that calculates the time required to recoup the investment in a project, by taking into account the present value of expected cash flows.

Financial Break-Even

The sales level that results in a zero NPV.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much revenue contributes towards covering fixed costs and generating profit.

Accounting Break-Even

Accounting Break-Even is the point at which total revenues equal total expenses (including both fixed and variable costs), resulting in neither profit nor loss.