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Question
The mean change in the value of a portfolio of trading assets has been estimated to be 0 with a standard deviation of 20 percent. Yield changes are assumed to be normally distributed.
What is the maximum yield change expected if a 95 percent confidence (one-tailed) limit is used?
A. 3.30%.
B. 20.0%.
C. 33.0%.
D. 39.2%.
E. 46.6%.
Answer
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