The Required Return for a Common Stock Is Defined as The

question 44

Multiple Choice

The required return for a common stock is defined as the:

• A) expected return based on probabilities assigned to different scenarios.
• B) maximum expected return based on estimates of its cash flows.
• C) minimum expected return necessary to induce an investor to purchase the stock.
• D) mean return for the stock over the past ten years.

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Definitions:

Repressed Material

Psychological content that has been unconsciously blocked from conscious awareness due to being considered threatening or unacceptable.

Primary-Process Thought

A mode of thinking primarily associated with the unconscious mind, characterized by the free and associative nature of thought, driven by basic drives and unconscious desires.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the realities of the external world, and the moral standards of the superego.

Primary Motivation

The fundamental drives or needs that initiate and guide behavioral or psychological processes.