Explanation:
The correct answer is A.
Recall that
From the data, we are given that: , , and
Therefore:
This means that we are 90% confident that the maximum loss will not exceed 36.96%.
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Q.2820 The mean return from a dataset has been pre-calculated and is given as 0.04. The standard deviation has also been given as 0.32. With 90% confidence, what will be our percentage maximum loss? Assume that from our dataset, Z = -1.28 and N(Z) = 0.10 since you are to locate the value at the 10th percentile.
A
36.96%
B
11.27%
C
11.32%
D
36.72%
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