On January 1, You Forecasted That There Is a 45

question 17

Multiple Choice

On January 1, you forecasted that there is a 45.0% chance that the price of Edward Bear Inc.shares will be $95 in one year while there is a 55.0% chance that the share price will be $35.Six months later, you revised the estimated probability to 25.0% chance of the high state (stock price of $95) .If the market agrees with your revised forecasts, what is the expected change in share price from January 1 to July 1? Assume the discount rate is zero.

• A)Price goes up by 19.35%
• B)Price goes down by 19.35%
• C)Price goes up by 24%
• D)Price goes down by 24%

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Definitions:

Many-trait Approach

A method in personality psychology that examines the relationships between a wide array of personality traits and behaviors or outcomes, seeking to understand how multiple traits come together to form the individual.

Typological Approach

A methodological stance in psychology that classifies individuals into distinct types based on shared characteristics, often used in personality, developmental, and social psychology.

Social Poise

The ability to remain calm, confident, and composed in social situations, often reflecting a sense of social ease and maturity.

Self-dramatizing

A tendency to act out or exaggerate one's emotions or experiences, often for attention or manipulation.