Question

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

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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"

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent,...
Over the past five years, a stock produced returns of 11 percent, 14 percent, 4 percent, -9 percent, and 5 percent. What is the probability that an investor in this stock will not lose more than 10 percent in any one given year? - Greater than .5 but less than 1.0 percent. - Greater than 1 percent but less than 2.5 percent. - Greater than 2.5 percent but less than 16 percent. - Greater than 84 percent but less than...
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. What is the 99 percent probability range of returns for this stock? A. −16.2 percent to 17.1 percent B. −5.1 percent to 17.1 percent C. −16.2 percent to 28.2 percent D. −27.3 percent to 39.3 percent
A stock had returns of 4 percent, 11 percent, 16 percent, -6 percent, and -2 percent...
A stock had returns of 4 percent, 11 percent, 16 percent, -6 percent, and -2 percent for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 20 percent in any one given year? A) Greater than 1 percent but less than 2.5 percent. B) Greater than 2.5 percent but less than 16 percent. C) Greater than .5 percent but less than 1 percent. D) Less than .5 percent. E)...
A stock had returns of 14 percent, 11 percent, 19 percent, 20 percent, 13 percent, and...
A stock had returns of 14 percent, 11 percent, 19 percent, 20 percent, 13 percent, and -7 percent over the last six years.    Required: (a) What is the arithmetic return for the stock?    (b) What is the geometric return for the stock?        Requirement 3: If the inflation rate last year was 8 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.)
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7...
Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7 percent, 8 percent, 2 percent, and -11 percent, respectively. What is the standard deviation of these returns?
A stock produced returns of 14 percent, 17 percent, and −10 percent over three of the...
A stock produced returns of 14 percent, 17 percent, and −10 percent over three of the past four years, respectively. The arithmetic average for the past four years is 6 percent. Show you work here (be as detailed and organized as possible): What is the missing return (i.e., the return in the fourth year)? What is the geometric average return over the four years? What is the standard deviation of returns of the stock? Show your work clearly below.
A stock has an expected rate of return of 9.8 percent and a standard deviation of...
A stock has an expected rate of return of 9.8 percent and a standard deviation of 15.4 percent. Which one of the following best describes the probability that this stock will lose at least half of its value in any one given year? A. less than 0.005 B. between 0.025 and 0.16 C. between 0.005 and 0.025 D. greater than 0.10
A stock has an expected rate of return of 9.8 percent and a standard deviation of...
A stock has an expected rate of return of 9.8 percent and a standard deviation of 15.4 percent. Which one of the following best describes the probability that this stock will lose at least half of its value in any one given year? A. greater than 0.10 B. less than 0.005 C. between 0.025 and 0.16 D. between 0.005 and 0.025
A stock had returns of 15 percent, 14 percent, 18 percent, 5 percent, 16 percent, and...
A stock had returns of 15 percent, 14 percent, 18 percent, 5 percent, 16 percent, and 2 percent over the last six years. What is the arithmetic return for the stock? What is the geometric return for the stock?
Financial management question A stock has had returns of 6 percent, 10 percent, 21 percent, -14...
Financial management question A stock has had returns of 6 percent, 10 percent, 21 percent, -14 percent, and 25 percent over the last five years. 1. What is the geometric return for the stock? 2. What is the standard deviation of this stock?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT