Rosita Owns a Stock with an Overall Expected Return of 14.40

question 46

Multiple Choice

Rosita owns a stock with an overall expected return of 14.40%. The economy is expected to either boom or be normal. There is a 52% chance the economy will boom. If the economy booms, this stock is expected to return 15%. What is the expected return on the stock if the economy is normal?

• A)12.00%
• B)12.83%
• C)13.15%
• D)13.75%
• E)14.40%

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Definitions:

Clean Technique

A set of infection prevention practices that aim to reduce the risk of spreading pathogens, particularly in medical and healthcare settings.

Inflammatory Response

The body's defense mechanism against infection or injury, characterized by redness, swelling, heat, and pain, designed to eliminate harmful stimuli and initiate healing.

Enlarged Lymph Nodes

A condition where the lymph nodes increase in size, often due to infection, inflammation, or malignancy.

White Blood Cells

Cells of the immune system involved in protecting the body against both infectious disease and foreign invaders.