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%

---

Definitions:

Adipose Tissue

Body tissue containing stored fat, serving as a source of energy, insulation, and cushioning for organs.

Vascularity

The degree of blood vessels present in a given tissue, often related to the nourishment and oxygenation of the area.

Xerosis

A medical term for abnormally dry skin, which can result from various factors including environmental and nutritional deficiencies.

Pruritus

Pruritus is the medical term for itching, a bothersome sensation that provokes the desire to scratch.