Your friend is the owner of a stock which had returns of 6%, 17%, and 1% for the past three years. Your friend thinks the stock may be able to achieve a return of 32.6% or more. Based on these
Returns, what is the probability that this stock will earn at least the 32.6% in any one given year?

Question

Quizplus · Accepted Answer

The probability is calculated by dividing the number of years with returns of 32.6% or more by the total number of years. Since none of the past returns reached 32.6%, the probability is 0 out of 3, or 0%. However, since 0% is not an option, the closest choice is 0.5%.

Your Friend Is the Owner of a Stock Which Had