Suppose a Stock Has a Higher Expected Rate of Return

question 128

Multiple Choice

Suppose a stock has a higher expected rate of return than a bank account. Then

• A)the price of the stock will rise and the expected rate of return will decrease.
• B)the price of the stock will fall and the interest rate will decrease.
• C)the price of the stock will fall and the expected rate of return will increase.
• D)the price of the stock will fall and the expected rate of return will decrease.
• E)Not enough information is given to determine the return on the stock.

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Definitions:

Observed Score

The actual score or measurement recorded during data collection.

Critical Score

The value that a test statistic must exceed in order for a hypothesis to be rejected at a specified significance level.

Reliability Coefficient

A measure indicating the consistency of a set of scores obtained from repeated measurements of the same phenomenon.

Parallel Forms Reliability

A measure of reliability obtained by administering different versions of an assessment tool to the same group of individuals and correlating the results.