Use the Table for the Question(s)below

question 86

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-If a stock pays dividends at the end of each quarter,with realized returns of R₁,R₂,R₃,and R₄ each quarter,then the annual realized return is calculated as:

• A)R_annual =
• B)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄)
• C)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄)- 1
• D)R_annual = R₁ + R₂ + R₃ + R₄

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Definitions:

Double Bonds

Double bonds are chemical bonds between two chemical elements involving four bonding electrons as opposed to two in a single bond.

Compound

A substance formed from two or more elements chemically united in fixed proportions.

Chloromethane

A colorless, flammable gas with a slight sweet odor, used in the production of silicones and butyl rubber.

Ethyne

A hydrocarbon compound with the formula C2H2, also known as acetylene, used as a fuel and a chemical building block.