A stock has returns of 18 percent, 15 percent, -21 percent, and 6 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year? a. -13.56 to 20.56 percent b. -71.73 to 71.73 percent c. -31.00 to 40.00 percent d. -24.60 to 31.80 percent e. -47.68 to 54.68 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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A stock has returns of 18 percent, 15 percent, -21 percent, and 6 percent for
the past four years. Based on this information, what is the 95 percent probability
range of returns for any one given year?
a. -13.56 to 20.56 percent
b. -71.73 to 71.73 percent
c. -31.00 to 40.00 percent
d. -24.60 to 31.80 percent
e. -47.68 to 54.68 percent
Transcribed Image Text:A stock has returns of 18 percent, 15 percent, -21 percent, and 6 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year? a. -13.56 to 20.56 percent b. -71.73 to 71.73 percent c. -31.00 to 40.00 percent d. -24.60 to 31.80 percent e. -47.68 to 54.68 percent
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