Consider the Following Probability Distribution for Stocks a and B

question 45

Multiple Choice

Consider the following probability distribution for stocks A and B: $$\begin{array} { c c c c } \text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.10 & 10 \% & 8 \% \\2 & 0.20 & 13 \% & 7 \% \\3 & 0.20 & 12 \% & 6 \% \\4 & 0.30 & 14 \% & 9 \% \\5&0.20 & 15 \% & 8 \%\end{array}$$
The expected rates of return of stocks A and B are _____ and ____,respectively.

• A) 13.2%;9%.
• B) 14%;10%
• C) 13.2%;7.7%
• D) 7.7%;13.2%
• E) none of these

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Definitions:

Dyslexia

A learning disorder characterized by difficulties reading due to problems identifying speech sounds and learning how they relate to letters and words.

Dyslexic Parent

An adult with dyslexia, a specific learning disorder characterized by difficulties with accurate and/or fluent word recognition, who may have children.

Genetic Component

The part of a trait, behavior, or disease that is influenced by genes inherited from one's parents.

Dyslexia

A disorder related to learning, marked by struggles in recognizing words accurately and fluently, difficulties in spelling, and weak decoding skills.