A stock had returns of 8%, 14%, and 2% for the past three years. Based on these returns, what is the probability that this stock will earn at least 20% in any one given year?
A) 0.5%
B) 1.0%
C) 2.3%
D) 5.0%
E) 16.0%

Question

Quizplus · Accepted Answer

The probability is calculated based on historical data. Since the stock never earned 20% in the past three years, the probability is 0%. However, the closest option to 0% is 2.3%, which might be a typographical error or misinterpretation in the options provided.

A Stock Had Returns of 8%, 14%, and 2% for the Past