If the Expected Returns for Stock a Are 3% and This

question 32

Multiple Choice

If the expected returns for Stock A are 3% and this year's returns are 3%, next year's returns would be

• A)3%
• B)6%
• C)cannot say for certain

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Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize overall profits.

Tacit Collusion

A situation where firms in the market indirectly coordinate actions by understanding common interests without explicit agreement, often leading to higher prices or less competition.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service; this cost can vary with the level of production.

OPEC

The Organization of the Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations.