You have a portfolio which has an average return of 12.6 percent. In any given year, you have a 2.5 percent probability of earning either a zero or a negative annual return. What is the approximate standard deviation of your portfolio?
A) 5.44 percent
B) 6.43 percent
C) 6.94 percent
D) 7.60 percent
E) 8.14 percent

Question

You have a portfolio which has an average return of 12.6 percent. In any given year, you have a 2.5 percent probability of earning either a zero or a negative annual return. What is the approximate standard deviation of your portfolio? 
A) 5.44 percent 
B) 6.43 percent 
C) 6.94 percent 
D) 7.60 percent 
E) 8.14 percent

Quizplus · Accepted Answer

The Answer of You have a portfolio which has an average return of 12.6 percent. In any given year, you have a 2.5 percent probability of earning either a zero or a negative annual return. What is the approximate standard deviation of your portfolio? 
A) 5.44 percent 
B) 6.43 percent 
C) 6.94 percent 
D) 7.60 percent 
E) 8.14 percent

You Have a Portfolio Which Has an Average Return of 12.6