Over the past five years,a stock produced returns of 14%,22%,-16%,2%,and 10%. What is the probability that an investor in this stock will NOT lose more than 8% nor earn more than 21% in any one given year?
A) 34%
B) 68%
C) 95%
D) 99%
E) 100%

Question

Quizplus · Accepted Answer

The returns that fall within the range of not losing more than 8% and not earning more than 21% are 14%, 2%, and 10%. This is 3 out of 5 years, which is 60%. However, the closest choice is 68%, which is a common approximation for one standard deviation in a normal distribution, suggesting a misunderstanding in the problem setup or choices.

Over the Past Five Years,a Stock Produced Returns of 14%,22%,-16%,2%,and