If You Think That There Is a 75% Chance of a Stock

question 67

Short Answer

If you think that there is a 75% chance of a stock increasing by 8% and a 25% change of it falling by 20%,what is the expected return on the stock? Report using percentages with two decimal places.

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Definitions:

Cognitive Therapist

A cognitive therapist is a mental health professional specialized in cognitive therapy, focusing on identifying and changing negative or inaccurate thought patterns.

Athletic Scholarship

Financial aid awarded to students based on their athletic abilities to help them pay for their education while they play sports for their college or university.

Gentle Questioning

A method of asking questions in a soft, non-threatening manner that encourages open and honest communication.

Group Therapies

Group therapies involve therapy sessions conducted with multiple participants led by one or more therapists, allowing individuals to share experiences and receive support from peers.