Rosita Owns a Stock with an Overall Expected Return of 14.40

question 50

Multiple Choice

Rosita owns a stock with an overall expected return of 14.40 percent.The economy is expected to either boom or be normal.There is a 52 percent chance the economy will boom.If the economy booms,this stock is expected to return 15 percent.What is the expected return on the stock if the economy is normal?

• A) 12.00 percent
• B) 12.83 percent
• C) 13.15 percent
• D) 13.75 percent
• E) 14.40 percent

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Definitions:

Initiative V. Guilt

A stage in Erik Erikson's theory of psychosocial development, where children face the challenge of taking initiative in activities while managing feelings of guilt for their actions.

Aggression In Children

Acts of hostility or violence by children towards others, which can stem from various causes including environmental factors, upbringing, and psychological issues.

Parental Substance Abuse

The misuse of drugs or alcohol by a child’s parent or guardian, affecting family dynamics and potentially the child’s development and welfare.

Inductive Punishing

A disciplinary method that involves explaining the consequences of a child's actions on others, promoting empathy and understanding.