Dothan Inc

question 44

Multiple Choice

Dothan Inc.'s stock has a 25% chance of producing a 16% return,a 50% chance of producing a 12% return,and a 25% chance of producing a -18% return.What is the firm's expected rate of return? Do not round your intermediate calculations.

• A) 4.51%
• B) 5.50%
• C) 4.68%
• D) 4.29%
• E) 6.38%

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Definitions:

Personalized Power

This refers to power used for personal gain, often without regard for others, focusing on self-centered objectives.

Expectancy Theory

A theory in motivational psychology that describes the motivational force as a function of an individual's belief in the likelihood of achieving desired performance levels and the perceived rewards associated with those levels.

P-to-O Expectancy

The belief that putting in a certain amount of effort (Performance) will lead to a specific outcome (Outcome) in the context of expectancy theory.

Four-drive Theory

A motivational theory suggesting that humans are driven by four basic needs: acquiring, bonding, learning, and defending.