Foxy Ladies Investment Club

question 4

Multiple Choice

Foxy Ladies Investment Club
The Foxy Ladies Investment Club purchased 100 shares of common stock each in Coca-Cola, Intel, and Merck on January 02, 2010. A summary of their portfolio is given below:

-Refer to Foxy Ladies Investment Club.What was the portfolio's simple arithmetic average return per year from 2010 through 2012?

• A) 20.0%
• B) 21.8%
• C) 68.3%
• D) 18.9%
• E) Not enough information is given to compute the simple arithmetic average return.

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Definitions:

Collectively Exhaustive

A set of events is collectively exhaustive if at least one of the events must occur.

Probability

A measure of the likelihood that an event will occur, expressed on a scale from 0 (impossibility) to 1 (certainty).

Random Experiment

An experimental process that leads to well-defined but unpredictable outcomes.

Sample Space

The set of all possible outcomes of a probability experiment.