Your Friend Is the Owner of a Stock Which Had

question 128

Multiple Choice

Your friend is the owner of a stock which had returns of 6%, 17%, and 1% for the past three years. Your friend thinks the stock may be able to achieve a return of 32.6% or more. Based on these returns, what is the probability that this stock will earn at least the 32.6% in any one given year?

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

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Definitions:

Alfred Binet

A French psychologist best known for developing one of the first intelligence tests.

John Watson

An American psychologist who established the psychological school of behaviorism.

Heredity

The process by which physical or mental qualities are genetically handed down from one generation to the next.

Human Intelligence

Human intelligence is the cognitive capability to learn, understand, apply knowledge, solve problems, and adapt to new situations.