Stock has returns-probability range for any one given year

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1. A stock has returns of 3 percent, 19 percent, -26 percent, and 16 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?

-17.5 to 23.5 percent

-26.4 to 36.1 percent

-9.0 to 12.3 percent

-58.6 to 64.6 percent

-38.1 to 44.1 percent

2. True or False   If you take a smaller risk, your profits will more likely be smaller.

True or False   Achieving less flexibility in a business enables the manager to respond more quickly as new information becomes available.

Reference no: EM131878444

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