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:

Action Event

An event in Java that represents the action of an interface element, such as a button being clicked.

JPanel Objects

Components in Java Swing package used to create a generic lightweight container for holding a group of UI elements.

JFrame

A class in Java Swing used to create a window where components like buttons, text fields, panels can be added.

Java GUI Application

A Java program that uses the Graphical User Interface to interact with users, typically involving windows, buttons, and text fields.