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A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the...

A stock had returns of 14 percent, 13 percent, −10 percent, and 7 percent for the past four years. Which one of the following best describes the probability that this stock will lose no more than 10 percent in any one year?

  • Greater than 1 percent but less than 2.5 percent

  • Greater than 95 percent

  • Greater than .5 but less than 1.0 percent

  • Greater than 2.5 percent but less than 16 percent

  • Greater than 84 percent but less than 97.5 percent

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Answer #1

Hence, probability that this stock will lose no more than 10 percent in any one year is 92.51% (1-7.49%)

Hence, correct option is "Greater than 84 percent but less than 97.5 percent"

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