A Stock Has an Average Historical Return of 14

question 87

Multiple Choice

A stock has an average historical return of 14.3 percent and a standard deviation of 18.2 percent. Which range of returns would you expect to see approximately two-thirds of the time?

• A) -23.8 to +53.0 percent
• B) +4.6 to +33.8 percent
• C) +5.8 to +31.6 percent
• D) -3.9 to +32.5 percent
• E) -5.8 to +31.6 percent

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Definitions:

Aircraft

Vehicles capable of atmospheric flight due to interaction with the air, such as airplanes or helicopters.

Financially Attractive

Refers to investments or projects that are appealing due to their potential for creating financial value or high returns.

Franchise

A business model where a business owner (franchisor) grants others (franchisees) the right to use its brand, product, or system in exchange for a fee.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.