An Equity Had Returns of 8%, 14%, and 2% for the Past

question 41

Multiple Choice

An equity had returns of 8%, 14%, and 2% for the past three years.Based on these returns, what is the probability that this equity will earn at least 20% 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:

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.

Production Function

An equation that specifies the output that can be produced by varying amounts of inputs, demonstrating how efficiently these inputs are converted into outputs.

Labor

The human effort, either physical or mental, used in the production process to create goods or provide services.

Monopolistic Distributor

A distributor who has exclusive control over the supply of a particular product or service in the market, limiting competition.