The Expected Return on a Stock That Is Computed Using

question 254

Multiple Choice

The expected return on a stock that is computed using economic probabilities is:

• A) Guaranteed to equal the actual average return on the stock for the next five years.
• B) Guaranteed to be the minimal rate of return on the stock over the next two years.
• C) Guaranteed to equal the actual return for the immediate twelve month period.
• D) A mathematical expectation based on a weighted average and not an actual anticipated outcome.
• E) The actual return you should anticipate as long as the economic forecast remains constant.

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Definitions:

Assimilation

The process by which individuals or groups adopt the culture, customs, and attitudes of another group, losing their original identity.

Residentially Mobile

Refers to individuals or populations that frequently relocate from one dwelling place or community to another.

Collectivistic

A social pattern that emphasizes interdependence and the priorities of the group over individual achievements.

Individualistic

Describing a social pattern in which individual interests, independence, and personal achievements are emphasized over collective goals.