If the Expected Returns for Stock a Are 3% and This

question 106

Multiple Choice

If the expected returns for Stock A are 3% and this year's returns are 3%, next year's returns would be

• A) 3%
• B) 6%
• C) between 3% and 6%
• D) cannot determine from the information given

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Definitions:

M Rises

This term is unclear without context, but could refer to an increase in a specific variable "M" in mathematical, economic, or other models.

Percentage Rise

A measure of how much a quantity increases over a period, expressed as a percentage of the initial value.

Equation of Exchange

An economic formula representing the relationship between the money supply, its velocity, the price level, and the number of transactions in an economy: MV = PQ.

Economy Output

The total value of all goods and services produced by an economy over a specific time period, also known as gross domestic product (GDP).