RTF Stock Is Expected to Return 10

question 34

Multiple Choice

RTF stock is expected to return 10.6 percent if the economy booms and only 4.2 percent if the economy goes into a recessionary period.The probability of a boom is 55 percent while the probability of a recession is 45 percent.What is the standard deviation of the returns on RTF stock?

• A)4.03 percent
• B)2.97 percent
• C)3.18 percent
• D)3.69 percent
• E)5.27 percent

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Definitions:

Socialization

The process by which individuals learn and adopt the values, norms, and behaviors that are expected of members in a particular society or organization.

PJ Fit

Person-job fit; the compatibility between an individual's characteristics and the demands of the job or the culture of the organization.

PO Fit

Person-Organization Fit, referring to the compatibility between an individual's characteristics and the values or culture of an organization, affecting engagement and satisfaction.

PE Fit

Person-Environment Fit refers to the congruence between an individual's characteristics and the demands of the environment or organization they are in.