Lester Has a Portfolio with an Average Return of 10 $\begin{array}{cr}\text { Probability } & \text { "z" value } \\\text { of loss } & \\1.0\% & 2.326 \\2.5 & 1.960 \\5.0 & 1.645\end{array}$

Lester has a portfolio with an average return of 10.8% and a standard deviation of 12.3%. He has a 1% probability of losing ________% or more in any given year.
$\begin{array}{cr}\text { Probability } & \text { "z" value } \\\text { of loss } & \\1.0\% & 2.326 \\2.5 & 1.960 \\5.0 & 1.645\end{array}$

A) 33.97
B) 28.33
C) 20.23
D) 17.81
E) 13.92

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free