A Stock Provides an Expected Return of 10% Per Year

question 20

Multiple Choice

A stock provides an expected return of 10% per year and has a volatility of 20% per year. What is the continuously compounded expected return in one year?

• A) 6%
• B) 8%
• C) 10%
• D) 12%

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Definitions:

Humanistic Psychologist

A professional in psychology who focuses on individual potential and emphasizes personal growth and the concept of self-actualization.

Consciously Chooses

The act of making a decision or selection with awareness and intention, often implying a deliberate thought process.

Behavioral Psychologist

A professional who studies and applies principles of behaviorism, focusing on observable behaviors and their modification.

Behaviorist

A psychologist who studies and interprets human behavior in terms of observable actions and reactions, often excluding mental states or emotions.