Preston Inc

question 81

Multiple Choice

Preston Inc.'s stock has a 25% chance of producing a 30% 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?

• A) 7.72%
• B) 8.12%
• C) 8.55%
• D) 9.00%
• E) 9.50%

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Definitions:

Declines

The process of diminishing in quality, quantity, or strength over time.

Assertiveness

A characteristic of being self-assured and confident without being aggressive.

Fluctuate

To change or vary irregularly in number, amount, or degree; often used to describe variables that do not remain constant.

Adult Personality

The range of enduring personal characteristics and traits that define an adult individual's enduring patterns of thinking, feeling, and behaving.