buy a stock that has an annual expected return of 20% and a standard deviation of 25%. Last year, investors in the stock lost 32.5% of their money and the year before they gained 40%. What is the probability that the outcome on this stock will be better than -32.5%, but less than +40% this year?   a. 18.75%   b. 78.82%   c. 77.03%   d. 22.97%

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You buy a stock that has an annual expected return of 20% and a standard deviation of 25%. Last year, investors in the stock lost 32.5% of their money and the year before they gained 40%. What is the probability that the outcome on this stock will be better than -32.5%, but less than +40% this year?

 

a. 18.75%

 

b. 78.82%

 

c. 77.03%

 

d. 22.97%

 

e. 52.50%

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