A stock had returns of 7%, 31%, 16%, and - 22% for the past four years. Which one of the following best describes the probability that this stock will NOT lose more than 59% in any one given year?

Question

Quizplus · Accepted Answer

Given the historical returns, the stock has not lost more than 59% in any of the four years provided. Therefore, based on this limited historical data, the probability that it will not lose more than 59% in any given year is 100%. However, since we are selecting the closest option provided, 99.5% (E) is the best choice.

A Stock Had Returns of 7%, 31%, 16%, and -