AmazonCom Stock Prices Gave a Realized Return of 5%,-5%,10%,and -10

question 67

Multiple Choice

Amazon.com stock prices gave a realized return of 5%,-5%,10%,and -10% over four successive quarters.What is the annual realized return for Amazon.com for the year?

• A)-1.25%
• B)2.50%
• C)0.00%
• D)1.25%
• E)1.00%

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Definitions:

Values of Z

Refers to the scores derived from a standard normal distribution used in statistical analysis to determine probabilities.

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Normal Distribution

An equal-probability distribution around the mean, which shows that instances near the mean happen more frequently than instances far from the mean.

Normal Probability Distribution

A bell-shaped distribution that is symmetric about the mean, showing how random variables are distributed.