If You Predicted That a Stock Would Be Worth $40

question 53

Multiple Choice

If you predicted that a stock would be worth $40 in five years and that you wanted to get a nine percent average annual return,what price should you be willing to pay for it now? (Assume no fees or taxes.)

• A)$38.53
• B)$22.00
• C)$26.00
• D)$25.54

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Definitions:

Psychotherapy

A treatment method for mental health issues that involves talking with a therapist, focusing on understanding and resolving problematic behaviors, beliefs, feelings, relationship issues, and/or somatic responses.

Rats and Pigeons

Commonly used animals in psychological and behavioral research to understand learning, cognition, and behavior patterns.

Think Clearly

The ability to understand, analyze, and communicate information logically and without confusion.

Fear God

A religious or spiritual concept that encompasses respect, awe, and reverence toward a deity.