TABLE 17-4
a Stock Portfolio Has the Following Returns Under

question 11

Multiple Choice

TABLE 17-4
A stock portfolio has the following returns under the market conditions listed below.
$$\begin{array} { c c c } \text { Market Condition } & \text { Probability } & \text { Return } \\\hline \text { Bull } & 0.4 & \$ 200 \\\text { Stable } & 0.3 & \$ 100 \\\text { Bear } & 0.3 & - \$ 100\end{array}$$
-Referring to Table 17-4, what is the return to risk ratio?

• A) 0.64
• B) 1.18
• C) 1.08
• D) 2.00

---

Definitions:

Negative Affect

A state of feeling or mood characterized by negative emotions such as sadness, anxiety, or anger.

Transaction Quickly

The swift completion of a business deal or financial exchange, minimizing time and maximizing efficiency.

Predictor of Behaviour

An indicator or factor that can be used to forecast future actions or tendencies of individuals or groups.

Theory of Reasoned Action

A psychological theory that predicts an individual's behavior based on their intention to engage in that behavior, influenced by attitudes and societal expectations.