You Have Been Given This Probability Distribution for the Holding-Period

question 65

Multiple Choice

You have been given this probability distribution for the holding-period return for a stock: $\begin{array}{lll}\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\\\text { Boom } & .40 & 22\% \\\text { Normal growth } & .35 & 11\%\\\text { Recession } & .25 & -9 \%\end{array}$

-What is the expected holding-period return for the stock?

• A)11.67%
• B)8.33%
• C)9.56%
• D)12.4%
• E)None of the above

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Definitions:

Rational Persuasion

A technique for swaying others by using rational debates and empirical data to alter convictions, viewpoints, or actions.

Influence Superiors

describes the ability to affect the views or actions of those in higher positions in an organization or society.

Influence Tactic

Strategies or approaches used by individuals to sway or alter others' attitudes, beliefs, or actions toward a desired outcome.

Legitimating

The process of making something acceptable and justifiable by norms, standards, or laws.