Which One of the Following Statements Is Correct Concerning the Expected

question 78

Multiple Choice

Which one of the following statements is correct concerning the expected rate of return on an individual share given various states of the economy?

• A)The expected return is a geometric average where the probabilities of the economic states are used as the exponential powers.
• B)The expected return is an arithmetic average of the individual returns for each state of the economy.
• C)The expected return is a weighted average where the probabilities of the economic states are used as the weights.
• D)The expected return is equal to the summation of the values computed by dividing the expected return for each economic state by the probability of the state.
• E)As long as the total probabilities of the economic states equal 100%,then the expected return on the share is a geometric average of the expected returns for each economic state.

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Definitions:

Ideological Control

The methods by which dominant groups maintain power through the dissemination and embedding of their values and beliefs into the fabric of society.

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A range of theoretical perspectives that seek to understand the nature of gender inequality, advocating for women's rights, interests, and issues.

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Individuals or groups who are considered to have the same status in society, without significant differences in power, wealth, or rights.

Political Equals

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