Rosita Owns a Stock with an Overall Expected Return of 14.40

question 50

Multiple Choice

Rosita owns a stock with an overall expected return of 14.40 percent.The economy is expected to either boom or be normal.There is a 52 percent chance the economy will boom.If the economy booms,this stock is expected to return 15 percent.What is the expected return on the stock if the economy is normal?

• A) 12.00 percent
• B) 12.83 percent
• C) 13.15 percent
• D) 13.75 percent
• E) 14.40 percent

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Successful Intelligence

A theory that intelligence involves a combination of analytical, creative, and practical abilities that enable one to achieve personal success.

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Relating to the intelligence that involves the control of one's bodily motions and the capacity to handle objects skillfully.

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