The Historical Returns Data for the Past Three Years for Stock

question 26

Multiple Choice

The historical returns data for the past three years for Stock B and the stock market portfolio are: Stock B: 24%, 0%, 24%, Market Portfolios: 10%, 12%, 20%. Calculate the expected return for Stock B and the market portfolio.

• A) Stock B 16%, Market Portfolio: 14%
• B) Stock B 14%, Market Portfolio: 16%
• C) Stock B 24%, Market Portfolio: 12%
• D) None of the above

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Definitions:

Content Services

Online services that provide users with digital content, such as news, music, video, and more, either for free or on a subscription basis.

Outsourcing

Obtaining a good or service from an external supplier, often in international markets.

Make-Or-Buy Decision

The strategic choice between producing a good or service internally or purchasing it from an external supplier.

Operational Risk

A measure of a firm’s inability to document the work remote employees do, describe the different situations they might face, and direct their responses in each scenario.