A Security Produced Returns of 12 Percent,-11 Percent,-2 Percent,15 Percent,and

question 27

Multiple Choice

A security produced returns of 12 percent,-11 percent,-2 percent,15 percent,and 9 percent over the past five years,respectively.Based on these five years,what is the probability that an investor in this stock will lose more than 17.06 percent in any one given year?

• A)0.50 percent
• B)1.00 percent
• C)1.25 percent
• D)2.50 percent
• E)5.00 percent

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Definitions:

Automatic Processing

refers to the unconscious encoding of incidental information, such as space, time, and frequency, and of well-learned information, such as word meanings.

Effortful Processing

A type of memory encoding that requires attention and conscious effort in order to encode information.

Two-Track Mind

The concept that the human mind operates both consciously and unconsciously at the same time.

Effortful Processing

A type of memory encoding that requires attention and conscious effort, as opposed to automatic processing.