Use the Information for the Question(s)below

question 8

Multiple Choice

Use the information for the question(s) below.
The current price of KD Industries stock is $20.In the next year the stock price will either go up by 20% or go down by 20%.KD pays no dividends.The one-year risk-free rate is 5% and will remain constant.
-The risk-neutral probability of an up state for KD Industries is closest to:

• A)37.5%.
• B)60.0%.
• C)40.0%.
• D)62.5%.

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Definitions:

Educational Remediation

A targeted instructional strategy meant to address and support the learning needs or deficits of students to help them reach expected competencies.

Emotional Intelligence

The ability to recognize, understand, manage, and reason with emotions in oneself and others.

Salovey and Mayer

Two psychologists who introduced the concept of emotional intelligence in 1990, proposing a model that emphasized the ability to monitor one’s own and others' feelings and emotions, to discriminate among them, and to use this information to guide one's thinking and actions.

Own and Other's Feelings

Own and Other's Feelings involves the ability to recognize, understand, and respond to one's own emotions as well as those of others, a key component of emotional intelligence.