Question

You have invested in a stock with an expected return of 14% and a standard deviation...

You have invested in a stock with an expected return of 14% and a standard deviation of 7%. Your target rate of return is 7%. What is the probability that you will not meet your objective, assuming stock returns are normally distributed?

1.

16.0%

2.

16.8%

3.

17.5

4.

18.2%

5.

18.8%

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Answer #1

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