Taggart Inc

question 23

Multiple Choice

Taggart Inc.'s stock has a 50% chance of producing a 25% return,a 30% chance of producing a 10% return,and a 20% chance of producing a −28% return.What is the firm's expected rate of return?

• A)9.41%
• B)9.65%
• C)9.90%
• D)10.15%
• E)10.40%

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Definitions:

Vigilance

The act or state of keeping careful watch for possible danger or difficulties.

Electrically Charged

Having an excess or deficiency of electrons, resulting in the ability to exert an electromagnetic force on other charged objects.

Neurons

The basic working units of the brain and the nervous system, cells responsible for receiving sensory input from the external world, sending motor commands to our muscles, and transforming and relaying the electrical signals at every step in between.

At Rest

A state where an object or individual is not in motion and is devoid of external forces acting upon it.