1. A stock has returns of 3 percent, 19 percent, -26 percent, and 16 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?
-17.5 to 23.5 percent
-26.4 to 36.1 percent
-9.0 to 12.3 percent
-58.6 to 64.6 percent
-38.1 to 44.1 percent
2. True or False If you take a smaller risk, your profits will more likely be smaller.
True or False Achieving less flexibility in a business enables the manager to respond more quickly as new information becomes available.