Probability Of Stock Having 90% Return Next Year


Suppose that, historically, a stock has a mean annual return of 10% and the standard deviation of its annual returns is 0.50. Assuming that the stock’s return is normally distributed, what is the probability that the stock will have a -90% return next year?

a) 0.05

b) 0.32

c) 0.00

d) 0.01

e) 0.02



The question belongs to Statistics and it is about calculating the probability of a stock having -90% return next year.

Total Word Count 28

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