Suppose There's a 50% Chance of a Stock Rising by 20

question 88

Multiple Choice

Suppose there's a 50% chance of a stock rising by 20% and a 50% chance of it falling by 20%.What is the expected rate of return on the stock?

• A) -20%
• B) 0%
• C) 10%
• D) 20%

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Definitions:

Emotional Stability

Refers to a person's ability to remain stable and balanced in their emotions, even in stressful situations.

Safety Precautions

Measures taken in advance to prevent accidents or harm to individuals in various environments, including the workplace, home, or public spaces.

Financial Ability

Financial ability refers to the capacity of an individual or entity to manage expenses and invest in assets, often involving income, savings, and credit.

Equipment-Related Accident

An incident where failure or misuse of medical or any other equipment results in harm or injury.