The Expected Return on a Stock Given Various States of the Economy

question 48

Multiple Choice

The expected return on a stock given various states of the economy is equal to the:

• A) highest expected return given any economic state.
• B) arithmetic average of the returns for each economic state.
• C) summation of the individual expected rates of return.
• D) weighted average of the returns for each economic state.
• E) return for the economic state with the highest probability of occurrence.

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Definitions:

Pass By Value

A method of passing arguments to functions where the actual data is copied, ensuring that the original data remains unchanged.

Pass By Reference

A method of passing arguments to functions where the function can modify the actual value of the variable by having its address.

Actual Parameters

The actual values or expressions passed to a function during a function call.

Parameters

Variables listed as part of a function's declaration or definition, representing the inputs that the function accepts.