What Is the Expected Return on a Security Given the Following

question 97

Multiple Choice

What is the expected return on a security given the following information?

• A) 8.78 percent
• B) 9.43 percent
• C) 9.97 percent
• D) 10.11 percent
• E) 11.38 percent

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Definitions:

Incentives

Factors, monetary or otherwise, that motivate individuals or businesses to act in a certain way, typically to achieve certain goals or outcomes.

Society's Welfare

The overall well-being and quality of life of a community or society, often considered in terms of health, happiness, and prosperity.

Efficiency

The degree to which resources are utilized effectively to achieve a goal with minimum waste of time and effort.

Government

The governing body of a nation, state, or community which creates and enforces laws, manages public resources, and regulates societal functions.