The Expected Return on a Stock Given Various States of the Economy

question 48

Multiple Choice

The expected return on a stock given various states of the economy is equal to the:

• A) highest expected return given any economic state.
• B) arithmetic average of the returns for each economic state.
• C) summation of the individual expected rates of return.
• D) weighted average of the returns for each economic state.
• E) return for the economic state with the highest probability of occurrence.

---

Definitions:

Organizational Development

Organizational Development is a field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.

Organizational Change

The process through which a company or organization undergoes transformation, involving major shifts in processes, culture, or strategy.

William Bridges

An author and consultant who developed a model of transition that focuses on the internal psychological process of adapting to new situations.

Continuity of Existence

The concept that an entity, idea, or system persists over time, maintaining its core identity or operations despite changes.