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:

Eating Disorders

A range of psychological disorders characterized by abnormal or disturbed eating habits.

Early Childhood

A critical period in human development extending from birth to approximately 8 years of age, characterized by rapid physical, cognitive, social, and emotional growth.

Controls

In experiments, a group that does not receive the treatment under study and is used as a benchmark to measure how the other tested groups do.

Abnormal Psychology

The scientific study of abnormal behavior undertaken to describe, predict, explain, and change abnormal patterns of functioning.