Your Friend Is the Owner of a Stock Which Had

question 56

Multiple Choice

Your friend is the owner of a stock which had returns of 25 percent,-36 percent,1 percent,and 16 percent for the past four years.Your friend thinks the stock may be able to achieve a return of 50 percent or more in a single year.Based on these returns,what is the probability that your friend is correct?

• A)less than 0.5 percent
• B)greater than 0.5 percent but less than 1.0 percent
• C)greater than 1.0 percent but less than 2.5 percent
• D)greater than 2.5 percent but less than 16 percent
• E)greater than 16.0 percent

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Definitions:

Bond Market

A financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

Appropriate Mix

The optimal combination or proportion of various elements to achieve a specific goal, often used in the context of investment portfolios.

Priced

Determined the monetary value of a product, service, or asset.

Cereal

A food product made from processed grains, typically eaten as a breakfast food, often fortified with vitamins.