The Expected Return on a Stock That Is Computed Using

question 136

Multiple Choice

The expected return on a stock that is computed using economic probabilities is:

• A) Guaranteed to equal the actual average return on the stock for the next five years.
• B) Guaranteed to be the minimal rate of return on the stock over the next two years.
• C) Guaranteed to equal the actual return for the immediate twelve month period.
• D) A mathematical expectation based on a weighted average and not an actual anticipated outcome.
• E) The actual return you should anticipate as long as the economic forecast remains constant.

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