Suppose There's an 80% Chance of a Stock Rising by 20

question 54

Multiple Choice

Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%.What is the expected rate of return on the stock?

• A) -40%
• B) -20%
• C) 8%
• D) 16%

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Definitions:

Moderating

The act of overseeing or controlling a discussion or debate to ensure fairness and adherence to rules.

Negotiating

The process of discussing and arriving at a mutual agreement between parties with differing needs, desires, or perspectives.

Group Disagreement

A situation where members within a group have differing opinions or points of view.

Data Gathering

The collection of information from various sources for analysis and interpretation, often used in research or decision-making processes.