An asset has an average return of 10.19 percent and a standard deviation of 22.41 percent. What is the most you should expect to lose in any given year with a probability of 16 percent

The answer is 32.6%

Explanation:

Solution

Given that

An assets has a return average of = 10.19%

Standard deviation = 22.41%

Probability in any given year = 16%

Now

The most you should expect to earn in any given year with a probability of 16 percent is = 10.19 + 22.41

= 32.6

Therefore, what you should expect in given year to lose is 32.6%