A Security Produced Returns of 12 Percent, -11 Percent, -2

question 87

Multiple Choice

A security produced returns of 12 percent, -11 percent, -2 percent, 15 percent, and 9 percent over the past five years, respectively.Based on these five years, what is the probability that an investor in this stock will lose more than 17.06 percent in any one given year?

• A).50 percent
• B)1.00 percent
• C)1.25 percent
• D)2.50 percent
• E)5.00 percent

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Definitions:

Circannual Rhythms

Circannual rhythms are biological processes or behaviors that follow a roughly annual cycle, allowing organisms to anticipate and prepare for seasonal changes in the environment.

Migratory Cycles

The regular, often seasonal movement patterns of animals from one region to another.

Birds

Warm-blooded, egg-laying, vertebrate animals characterized by feathers, beaked jaws, and a high metabolic rate, belonging to the class Aves.

Menstrual Cycle

The regular natural change that occurs in the female reproductive system that makes pregnancy possible, including the process of ovulation and menstruation.