What is the probability that your friend is correct

Reference no: EM131977279

Question: Your friend is the owner of a stock which had returns of 25 percent, -36 percent, 1 percent, and 16 percent for the past four years. Your friend thinks the stock may be able to achieve a return of 50 percent or more in a single year. Based on these returns, what is the probability that your friend is correct?

a. less than 0.5 percent

b. greater than 2.5 percent but less than 16 percent

c. greater than 1.0 percent but less than 2.5 percent

d. greater than 16.0 percent

e. greater than 0.5 percent but less than 1.0 percent (please explain the calculation.)

Reference no: EM131977279

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