Over the Past Five Years,a Stock Produced Returns of 11

question 7

Multiple Choice

Over the past five years,a stock produced returns of 11 percent,14 percent,4 percent,-9 percent,and 5 percent.What is the probability that an investor in this stock will not lose more than 10 percent in any one given year?

• A)greater than 0.5 but less than 1.0 percent
• B)greater than 1.0 percent but less than 2.5 percent
• C)greater than 2.5 percent but less than 16 percent
• D)greater than 84 percent but less than 97.5 percent
• E)greater than 95 percent

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Definitions:

Cash Disbursements

The outflow of cash for the purpose of payment, often documented for accounting purposes.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to the product.

Wages Expense

The total amount of compensation paid to employees for their labor, including hourly wages and salaries, before any deductions.

Budgeted Cost

Budgeted Cost refers to the estimated financial expenditure associated with a project or activity, outlined during the budgeting process.