Use the Information for the Question(s) Below

question 14

Multiple Choice

Use the information for the question(s) below.
The current price of KD Industries' stock is $20. In the next year the stock price will either go up by 20% or go down by 20%. KD pays no dividends. The one year risk-free rate is 5% and will remain constant.
-The risk-neutral probability of an up state for KD industries is closest to:

• A) 37.5%
• B) 60.0%
• C) 40.0%
• D) 62.5%

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Definitions:

Company's Needs

The requirements or demands of a business that must be met to achieve its objectives, including resources, workforce skills, and infrastructure.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work.

Job Enrichment

A method of motivating employees by enhancing the quality of their job roles with more challenging and meaningful tasks, leading to higher job satisfaction.

Empowered

Being given the authority, confidence, and resources to make decisions and take actions that affect one's work or environment.