If You Think That There Is a 75% Chance of a Stock

question 67

Short Answer

If you think that there is a 75% chance of a stock increasing by 8% and a 25% change of it falling by 20%,what is the expected return on the stock? Report using percentages with two decimal places.

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Definitions:

Most Assertive

Referring to the highest degree of confidence and decisiveness in expressing one’s thoughts, opinions, or needs.

"I Feel Uncomfortable"

A vocal expression indicating discomfort or unease, whether physical or emotional.

Nonverbal Cues

Forms of communication without words, such as gestures, body language, facial expressions, and other visual cues, that convey meaning or emotion.

Thick Glasses

Eyewear with significantly strong lenses prescribed to correct severe visual impairments, making the lenses noticeably thicker than average.