What Is the Expected Return on This Stock Given the Following

question 51

Multiple Choice

What is the expected return on this stock given the following information?

• A) 9.36 percent
• B) 9.74 percent
• C) 10.70 percent
• D) 11.78 percent
• E) 12.05 percent

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Definitions:

Diffusion of Innovation

The method in which a new idea is spread via specific pathways over a period among members of a societal system.

Early Majority

The early majority consists of individuals in a market who adopt new products or innovations after a careful review, following the innovators and the early adopters, representing a significant portion of the adoption curve.

Diffusion of Innovation

The process by which an innovation is communicated through certain channels over time among the members of a social system.

Innovators

Individuals or organizations that first adopt new technologies or ideas, often leading the way for others to follow.