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Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of 18.2 percent. If the returns are normally

Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of

18.2 percent. If the returns are normally distributed, the most accurate probability that the stock will

return more than 50 percent in any one given year is less than:

A.

.025%.

B. .05%.

C.

2.5%.

D. .05%.

E. 1.25%.

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