You Are Considering Purchasing Stock S

question 47

Multiple Choice

You are considering purchasing stock S. This stock has an expected return of 8% if the economy booms and 3% if the economy goes into a recessionary period. The overall expected rate of return on this stock will:

• A) be equal to one-half of 8% if there is a 50% chance of an economic boom.
• B) vary inversely with the growth of the economy.
• C) increase as the probability of a recession increases.
• D) be equal to 75% of 8% if there is a 75% chance of a boom economy.
• E) increase as the probability of a boom economy increases.

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Definitions:

Char Variable

A variable that stores a single character data type in programming languages.

7th Character

Refers to the character located at position seven in a sequence of characters, considering the first character is at position one.

String Variable

A string variable is a type of variable that holds sequences of characters, such as words or sentences.

MyString

Assuming this is a user-defined class or variable, there is no generic definition. Typically, it could be a custom implementation of a string type in programming.