A portfolio has an average return of 14.2 percent and a standard deviation of 12.85 percent.Given this,you should expect to lose at least ________ percent on an annual basis once every century.
A) −19.53
B) −17.24
C) −15.69
D) −1.710
E) −1.550

Question

A portfolio has an average return of 14.2 percent and a standard deviation of 12.85 percent.Given this,you should expect to lose at least ________ percent on an annual basis once every century. 
A) −19.53 
B) −17.24 
C) −15.69 
D) −1.710 
E) −1.550

Quizplus · Accepted Answer

Loss percent = 0.142 − 2.326 (0.1285) = −15.69 percent

A Portfolio Has an Average Return of 14