25.2k views
2 votes
What is the probability of a stock making money in the next year?

1) 45%
2) 55%
3) 65%
4) 75%

User Hynick
by
8.0k points

1 Answer

2 votes

Final answer:

The actual probability of a stock making money in the next year, based on the given information, is 5%, which is not listed among the provided options.

Step-by-step explanation:

The question of what is the probability of a stock making money in the next year is a mathematical problem dealing with probability. It's important to analyze each provided situation or invest in hypotheticals to calculate expected outcomes. In this context, you are considering different probabilities of returns on investment (ROI) - losing the investment, breaking even, or making a profit.

Given the probabilities of different outcomes - losing all money (35%), no profit and no loss (60%), and a significant increase in value (5%) - we can conclude that the probability of the stock making money, or giving a positive return, is the probability of it increasing in value, which is 5%. Therefore, out of the given options (1) 45%, (2) 55%, (3) 65%, (4) 75%, the correct choice would be none of the above, as the actual probability provided in the scenario is 5%.

User Weholt
by
8.3k points