a). A stock has returns of 5%, 16%, -18%, and 11% for the past four years. Based on this information, what is the 99% probability range for any one given year?

Multiple Choice

-35.5 to 42.5%

-41.6 to 48.6%

-11.5 to 18.5%

-26.5 to 33.5%

-8.6 to 13.6%

b). Driving in your car, you hear that Microsoft has announced that they have cornered the market on Internet technology. Knowing this is great news for Microsoft, when you arrive at a phone 30 minutes later you call your broker and are able to buy Microsoft stock before its price moves up on the news. This is a violation of ___________ market efficiency.