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:

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