What is probability that an investor in this stock

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1. Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent, -9 percent, and 5 percent. What is the probability that an investor in this stock will not lose more than 10 percent in any one given year?

Greater than .5 but less than 1.0 percent.

Greater than 1 percent but less than 2.5 percent.

Greater than 2.5 percent but less than 16 percent.

Greater than 84 percent but less than 97.5 percent.

Greater than 95 percent.

2. A stock had returns of 14 percent, 13 percent, -10 percent, and 7 percent for the past four years. Which one of the following best describes the probability that this stock will lose no more than 10 percent in any one year?

Greater than .5 but less than 1.0 percent.

Greater than 1 percent but less than 2.5 percent.

Greater than 2.5 percent but less than 16 percent. .

Greater than 84 percent but less than 97.5 percent.

Greater than 95 percent.

Reference no: EM131915467

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