A stock had returns of 10%, 2%, 8%, 17%, and - 7% for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 15% in any one given year?

A) 0.5%
B) 1.0%
C) 2.5%
D) 5.0%
E) 16.0%

Question

Zybrea Knight · Accepted Answer

Final Answer : E, Explanation :  Out of the five years, the stock returned at least 15% in one year. Therefore, the probability is 1 out of 5, which is 20%. However, since 16.0% is the closest option provided, it is the correct choice.

A stock had returns of 10%, 2%, 8%, 17%, and - 7% for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 15% in any one given year?

A) 0.5%
B) 1.0%
C) 2.5%
D) 5.0%
E) 16.0%

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A stock had returns of 10%, 2%, 8%, 17%, and - 7% for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 15% in any one given year?A) 0.5%B) 1.0%C) 2.5%D) 5.0%E) 16.0%

Definitions

Learning Objectives

Learning Objectives

Related questions

A stock had returns of 10%, 2%, 8%, 17%, and - 7% for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 15% in any one given year?

A) 0.5%
B) 1.0%
C) 2.5%
D) 5.0%
E) 16.0%