Suppose There's an 80% Chance of a Stock Rising by 20

question 54

Multiple Choice

Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%.What is the expected rate of return on the stock?

• A) -40%
• B) -20%
• C) 8%
• D) 16%

---

Definitions:

Counseling

A professional guidance process to help individuals manage and overcome personal, social, or psychological challenges.

Pyloric Stenosis

A digestive condition where the opening between the stomach and small intestine thickens, obstructing food passage.

Jaundice

A medical condition characterized by the yellowing of the skin and the whites of the eyes due to high bilirubin levels.

Well-Child Check

Well-Child Check refers to routine medical visits for the assessment of a child's growth, development, and health, aiming to prevent illnesses and promote wellness.