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Leah Merryweather stock has an expected rate of return of 12.5% and a standard deviation of 26.3%. Which one of the following best describes the

Leah Merryweather stock has an expected rate of return of 12.5% and a standard

deviation of 26.3%. Which one of the following best describes the probability that this stock

will lose 40% or more in any one given year?

  1. 0.5%
  2. 1.0%
  3. 2.5%
  4. 5.0%
  5. 16.0%

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