| Scenario | RC Value | Probability of Scenario |
| 1 | -0.01 | 0.1 |
| 2 | -0.03 | 0.2 |
| 3 | 0.01 | 0.4 |
| 4 | 0.02 | 0.2 |
| 5 | 0.04 | 0.1 |
Q: What is the probability that the return on Stock C next week is negative? Choose the closest from the answers below.
or
Q: How likely is it that Stock C will have a negative return the next week? From the following responses, select the one that is closest.
- 0.3
- 0.1
- 0.4
- 0.5
- 0.2
Explanation: The probability that the return on Stock C next week is negative is 0.3.
