The Expected Return on a Stock That Is Computed Using

question 14

Multiple Choice

The expected return on a stock that is computed using economic probabilities is:

• A)guaranteed to equal the actual average return on the stock for the next five years.
• B)guaranteed to be the minimal rate of return on the stock over the next two years.
• C)guaranteed to equal the actual return for the immediate twelve month period.
• D)a mathematical expectation based on a weighted average and not an actual anticipated outcome.
• E)the actual return you should anticipate as long as the economic forecast remains constant.

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Definitions:

Revocation

The act of officially withdrawing, cancelling, or reversing a decision, offer, or statement.

Counteroffer

A response to an original offer which modifies conditions or proposes new terms, effectively rejecting the initial offer and becoming a new proposal in the negotiation process.

Lapse Of Time

The expiration of a specified duration, after which legal claims may be void or rights may expire.

Valid Offer

A proposal made by one party to another intended to create a legally binding agreement when accepted.