Consider the Following Probability Distribution for Stocks C and D

question 46

Multiple Choice

Consider the following probability distribution for stocks C and D: $\begin{array}{cccc}\underline{\text { State }} &\underline{ \text { Probability }} &\underline{ \text { Return on Stock C} } &\underline{ \text { Return on Stock D} } \\1 & 0.30 & 7 \% & -9 \% \\2 & 0.50 & 11 \% & 14 \% \\3 & 0.20 & -16 \% & 26 \%\end{array}$

-The expected rates of return of stocks C and D are _____ and _____,respectively.

• A)4.4%; 9.5%
• B)9.5%; 4.4%
• C)6.3%; 8.7%
• D)8.7%; 6.2%
• E)none of the above

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Definitions:

Organic Inferiority

A concept introduced by psychologist Alfred Adler, referring to the perceived or actual physical weaknesses that can lead to feelings of inadequacy and compensatory striving for superiority.

Depressive Complex

A constellation of feelings, thoughts, and behaviors characterized by sadness, low self-esteem, and a lack of interest or pleasure in activities.

Superiority Complex

A psychological defense mechanism in which a person's feelings of superiority mask their true feelings of inferiority or weakness.

The Conscious

The part of the human mind that is aware of thoughts, feelings, and surroundings at any given moment.