LJP,Inchas the Following Probability Distribution of Holding Period Returns on Its

question 26

Multiple Choice

LJP,Inc.has the following probability distribution of holding period returns on its stock. $$\begin{array} { l c c } \text { State of the Economy } & \text { Probability } & \text { HPR } \\\hline \text { Boom } & .25 & 25 \% \\\text { Normal growth } & .45 & 15 \% \\\text { Recession } & .30 & 9 \%\end{array}$$
The expected return on LJP's stock is

• A) 15.7%.
• B) 12.4%.
• C) 16.5%.
• D) 17.8%.
• E) 11.6%.

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Definitions:

Looking-glass Self

A concept in sociology that suggests an individual's self-perception is influenced by how they believe others perceive them.

Ideal Self

A person's conception of how they would like to be or believe they should be, often serving as a motivation for self-improvement or behavioral change.

Real Self

People as they actually are.

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Fundamental beliefs or values that guide an individual's actions or the operations of an organization.