Your friend is the owner of a stock which had returns of 6%, 17%, and 1% for the past

three years. Your friend thinks the stock may be able to achieve a return of 32.6% or more.

Based on these returns, what is the probability that this stock will earn at least the 32.6% in

any one given year?

1. 0.5%
2. 1.0%
3. 2.5%
4. 5.0%
5. 16.0%

Please show the work