A Stock Had Returns of 10%, 2%, 8%, 17%, and -

question 31

Multiple Choice

A stock had returns of 10%, 2%, 8%, 17%, and - 7% for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 15% 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:

Fixed Costs

Fixed charges that stay steady irrespective of the amount of goods produced or sold, such as property leases, payroll, and indemnity costs.

Peak-period Capacity

The maximum output level that a company can sustain during the busiest period without increasing long-term fixed costs.

Machining Department

A specialized sector within a manufacturing facility where metal is cut, shaped, and finished using machine tools.

Direct Labor-hours

A measure of the total hours worked by employees who are directly involved in the production of goods or services.