A Stock Has Returns of 3%,18%,-24%,and 16% for the Past

question 26

Multiple Choice

A stock 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%

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Definitions:

Gain Sharing

A performance-related pay plan that gives employees incentives based on improvements in company performance, such as increased productivity or profitability.

Productivity Gains

Improvements in output or efficiency, allowing more to be accomplished with the same or fewer resources.

Profit-Sharing Plan

A company program that offers employees a share in the profits of the business, typically as a form of incentive or bonus.

Merit Pay Plan

A compensation strategy where employees are paid based on their performance or achievements, often intended to motivate and reward excellence.