Consider the Following Probability Distribution for Stocks a and B

question 2

Multiple Choice

Consider the following probability distribution for stocks A and B: $\begin{array}{cccc}\text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.15 & 8 \% & 8 \% \\2 & 0.20 & 13\% & 7\% \\3 & 0.15 & 12\%& 6\% \\4 & 0.30 & 14\%& 9\% \\5 & 0.20 & 16\% & 11 \%\end{array}$
The expected rates of return of stocks A and B are _____ and _____, respectively.

• A) 13.2%; 9%
• B) 13%; 8.4%
• C) 13.2%; 7.7%
• D) 7.7%; 13.2%

Recognize the legal implications of the relationships between agency, principal, and third parties.

Comprehend the concept of fiduciary duties within various business relationships.

Identify the consequences of an individual's actions in a partnership or sole proprietorship on personal and business liability.

Understand the processes and legal requirements for establishing different business entities.

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Definitions:

Study Together

The act of learning or researching in collaboration with others, often enhancing understanding through shared insights.

Erroneous Generalization

A logical fallacy that occurs when a conclusion is drawn from an unrepresentative sample or insufficient evidence.

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Individuals or entities who steal or embezzle assets or resources from a corporation.

Splendid Economic Recovery

Describes a period of rapid and substantial economic improvement following a downturn or recession.