Suppose You Own Two Stocks, a and B

question 62

Multiple Choice

Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9% return. In year 2, stock A earns an 18% return and stock B earns an 11% return. __________ has the higher arithmetic average return.

• A) Stock A
• B) Stock B
• C) The two stocks have the same arithmetic average return.
• D) At least three periods are needed to calculate the arithmetic average return.

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Definitions:

Task Behavior

Actions and activities undertaken by individuals or teams in pursuit of achieving specific goals or completing certain duties.

Situational Leadership

A leadership approach that suggests the most effective leadership style varies depending on situational factors and the needs of the team.

Relationship Behavior

Actions and patterns of interaction between individuals that affect the dynamics of their relationship, including communication, problem-solving, and support.

Situational Leadership

A leadership style that proposes the effectiveness of a leader is dependent on their ability to adapt their approach based on the maturity level of their team members and the specifics of the situation.