If You Think That There Is a 75% Chance of a Stock

question 67

Short Answer

If you think that there is a 75% chance of a stock increasing by 8% and a 25% change of it falling by 20%,what is the expected return on the stock? Report using percentages with two decimal places.

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Definitions:

Certification Mark

A mark used by someone other than its owner to certify the quality, origin, or other aspects of goods or services.

Real Cheese

Cheese made from natural ingredients and milk, without the use of artificial flavors, preservatives, or fillers.

Trademark

An emblem, term, or phrase officially recorded or accepted through utilization to denote a firm or its products.

Federal Registration

The process by which a business or product is registered with a federal government agency, often to gain legal protection or permission to operate.