A portfolio has an average return of 14.2 percent and a standard deviation of 14.5 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)-15.68
D)-1.710
E)-1.550

Question

A portfolio has an average return of 14.2 percent and a standard deviation of 14.5 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)-15.68 
D)-1.710 
E)-1.550

Quizplus · Accepted Answer

Loss percent = .142 - 2.326(.145) = -19.53 percent

A Portfolio Has an Average Return of 14