Question: Please help me answer this question from finance class. You are trying to sell a mutual fund to a customer, who can tolerate losing more
Please help me answer this question from finance class.
You are trying to sell a mutual fund to a customer, who can tolerate losing more than 10% of assets during a bad year if that happened only once every twenty years. If the expected annual return of the fund you are selling is 8% and the daily volatility is 0.72%, explain briefly how likely is it that the customer would buy the fund. Assume that there are 255 trading days in a year.
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