The Returns on the Common Stock of New Image Products

question 78

Multiple Choice

The returns on the common stock of New Image Products are quite cyclical.In a boom economy,the stock is expected to return 32 percent in comparison to 14 percent in a normal economy and a negative 28 percent in a recessionary period.The probability of a recession is 25 percent while the probability of a boom is 20 percent.What is the standard deviation of the returns on this stock?

• A)21.41 percent
• B)21.56 percent
• C)25.83 percent
• D)32.08 percent
• E)39.77 percent

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Definitions:

Decrease Accountability

Reducing the extent to which individuals or teams are held responsible for their actions, decisions, or performance.

Quality Evaluation

The process of assessing the quality of products, services, processes, or performance through set criteria and standards.

Partner Proficiency

The level of skill and competence a partner or team member possesses in contributing towards collective goals or tasks.

Production Blocking

A phenomenon in group settings where the process of waiting for others to contribute ideas can inhibit individual creativity and the generation of ideas.