Which One of the Following Events Is Considered Part of the Expected

question 168

Multiple Choice

Which one of the following events is considered part of the expected return on Fido stock?

• A) The president of Fido suddenly announced that the firm is going to cut production effective immediately.
• B) The government just announced a tax cut which will directly impact the sales of Fido.
• C) The management of Fido announced their ten-year plan for expansion five years ago.
• D) The price of Fido stock suddenly dropped due to rumours concerning company fraud.
• E) Fido just won a major government contract which they had not anticipated winning.

---

Definitions:

Banking System

The network of institutions that accept deposits, provide loans, and offer various financial services to businesses and individuals.

Money Supply

Money Supply refers to the total amount of money available in an economy, including cash, coins, and balances held in checking and savings accounts.

Board of Governors

A group typically in charge of overseeing the management and operations of an organization or institution, such as the Federal Reserve in the United States.

Congress

Congress is the bicameral legislature of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.