Question
Aimee is the owner of a stock with annual returns of 17.6 percent, 11.7 percent, 5.6 percent, and 9.7 percent for the past four years.
Aimee is the owner of a stock with annual returns of 17.6 percent, 11.7 percent, 5.6 percent, and 9.7 percent for the past four years. She thinks the stock may achieve a return of 17 percent again this coming year. What is the probability that your friend is correct?
a) Less than .5 percent
b) Greater than .5 percent but less than 1 percent
c) Greater than 1 percent but less than 2.5 percent
d) Greater than 2.5 percent but less than 16 percent
e) Greater than 16 percent
A stock had annual returns of 11.3 percent, 9.8 percent, 7.3 percent, and 14.6 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?
a) 2.4 to 17.5 percent
b) 2.60 to 11.80 percent
c)12.5 to 26.7 percent
d) 10.4 to 12.3 percent
e) 10.9 to 25.1 percent
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