Answer: 0.34

Since the two events are mutually exclusive (a stock return cannot be both below -5% and above +5% at the same time), the probability of either event occurring is simply the sum of their individual probabilities: P(R < -5% or R > +5%) = P(R < -5%) + P(R > +5%) = 16% + 18% = 34% = 0.34 This follows the basic probability rule for mutually exclusive events: P(A ∪ B) = P(A) + P(B) when A and B are mutually exclusive.

Author: Nikitesh Somanthe