What Is the Expected Return on a Stock with a Guaranteed

question 186

Multiple Choice

What is the expected return on a stock with a guaranteed dividend of $3 if there is a 30-percent chance its price could rise by 50 percent, a 30-percent chance its price could fall by 50 percent, and a 40-percent chance its price could stay constant at the present price of $60 per share?

• A)$60
• B)$33
• C)$3
• D)$0
• E)-$27

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Definitions:

Diaphragm of Stethoscope

The diaphragm of a stethoscope is the flat, disc-shaped part used to listen to higher frequency sounds in the body, such as breath, bowel, and heart sounds.

Auscultating

The act of listening to the internal sounds of the body, typically with a stethoscope, as part of a medical examination.

Deep, Rapid Breaths

A pattern of breathing that is both deeper and faster than normal, often a sign of distress, excitement, or physical exertion.

Tactile Fremitus

A vibration felt on the chest wall during speech, which can indicate abnormalities in or around the lungs.