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:

Min/Max Function

A mathematical function that identifies the minimum or maximum value within a particular set of data or input.

Same Income

A scenario in which two or more entities earn or receive an identical amount of money.

Same Prices

A condition where two or more goods or services are sold at identical price points.

Consumption Bundle

A collection of goods or services that a consumer selects for purchase, representing a combination of different items that provide utility.