A Stock Provides an Expected Return of 10% Per Year

question 11

Multiple Choice

A stock provides an expected return of 10% per year and has a volatility of 20% per year.What is the expected value of the continuously compounded return in one year?

• A) 6%
• B) 8%
• C) 10%
• D) 12%

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Definitions:

Alimony Payments

Payments made by one ex-spouse to another for support following a divorce or legal separation.

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, as defined by bankruptcy law.

Prepetition Assets

Assets that a debtor possesses before filing for bankruptcy.

Exempt Assets

Properties or assets that are protected by law from being seized by creditors or in bankruptcy proceedings.