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%

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Definitions:

Modeling

A method of learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Overregularization Errors

Grammatical mistakes that children make because they apply grammatical rules too stringently to words that are exceptions.

Grammatical Sophistication

The extent to which an individual's use of language demonstrates complexity and accuracy in syntax and structure.

Language Delay

A condition where a child's language development is noticeably slower than that of their peers.