QUESTION 2

1. A stock has produced annual returns of 11 percent, 15 percent, -6 percent, and 4 percent over the past four years, respectively. What is the 95 percent probability range of returns? (Hint: compute average returns and standard deviation. Range=average returns2(St.Dev)).

   		-25.9 to 37.9 percent
   		-12.4 to 24.4 percent
   		-9.9 to 21.9 percent
   		-3.2 to 15.2 percent