An Equity Has Returns of 3%, 18%, -24%, and 16

question 19

Multiple Choice

An equity has returns of 3%, 18%, -24%, and 16% for the past four years.Based on this information, what is the 95% probability range for any one given year?

• A)-8.4 to 11.7%
• B)-16.1 to 22.6%
• C)-24.5 to 34.3%
• D)-35.4 to 41.9%
• E)-54.8 to 61.3%

---

Definitions:

Noncash Assets

Items of value owned by a business or individual that are not in the form of cash, such as real estate, equipment, and patents.

Income Ratios

Financial metrics that examine a company's income or profit relative to sales, assets, equity, or other financial metrics, providing insight into the efficiency and profitability of the company.

Capital Balances

Reflects the amount of capital that each partner or shareholder has contributed to a partnership or corporation, or their ownership stake.

Partners' Capital Statement

A financial statement showing the changes in each partner's capital account of a partnership during a specific period.