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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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