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Problem 1: Stock PVQ has an annual mean return of 16% and a standard deviation of 42%. What is the smallest possible loss in the next week with a probability of 2.5%?
A) -23.96%
B) -13.66%
C) -11.11%
D) -16.42%
Problem 2: The probability that a standard normal random variable is either less than -1.96 or greater than +1.96 is approximately
A) 2.5%
B) 5.0%
C) 10%
D) 31.74%
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