Question

A stock has an expected rate of return of 9.8 percent and a standard deviation of...

A stock has an expected rate of return of 9.8 percent and a standard deviation of 15.4 percent. Which one of the following best describes the probability that this stock will lose at least half of its value in any one given year?

A.

less than 0.005

B.

between 0.025 and 0.16

C.

between 0.005 and 0.025

D.

greater than 0.10

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