You Are Comparing Stock a to Stock B

question 15

Multiple Choice

You are comparing stock A to stock B. Given the following information, what is the difference in the expected returns of these two securities?

• A)-0.85 percent
• B)1.95 percent
• C)2.05 percent
• D)13.45 percent
• E)13.55 percent

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Definitions:

Information-processing Style

Describes an individual's preferred method of gathering, analyzing, and interpreting information to make decisions.

Logical

Pertaining to the formal principles of reasoning, characterized by clear and consistent thought processes guided by rules of valid inference.

Intuitive

Pertaining to using or based on what one feels to be true even without conscious reasoning; instinctive.

Programmed Decisions

Decision-making processes that are routine and repetitive, often automated or guided by established policies and procedures.