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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
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. | greater than 0.5 percent but less than 1.0 percent | |
b. | less than 0.5 percent | |
c. | greater than 16.0 percent | |
d. | greater than 2.5 percent but less than 16 percent | |
e. | greater than 1.0 percent but less than 2.5 percent |
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