1. A stock had returns of 14 percent, 3 percent, 9 percent, and -12 percent annually for the past four years. What is the mean and variance of these returns? A. 3.50%; 0.0069 B. 3.50%; 0.0381 C. 9.50%; 0.0033 D. 3.50%; 0.0127
A stock had returns of 19 percent, 12 percent, -10 percent, 25 percent, and 4 percent annually for the past five years. Based on these returns, what is the approximate probability that this stock will earn at least 30 percent in any one given year?
A. 5 percent
B. 16 percent
C. 2.5 percent
D. 10 percent
2. A stock has an expected rate of return of 14.2 percent and a standard deviation of 23.4 percent. Which one of the following best describes the probability that this stock will lose more than 32.6 percent of its value in any one year?
A. Approximately 1 percent.
B. Less than 1 percent
C. Approximately 2.28 percent
D. Less than 0.26 percent