What Is the Expected Return on a Stock That Has

question 70

Multiple Choice

What is the expected return on a stock that has a 15 percent probability of a 35 percent return,a 20 percent probability of a 25 percent return,a 50 percent probability of a 15 percent,and a probability of 15 percent of -20 percent?

• A) 18.75%
• B) 14.75%
• C) 13.75%
• D) 20.75%

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Definitions:

Revenue

The overall revenue accrued from the sales of products or services pertinent to a company's main business activities.

Spending Variances

The gap between what was planned to be spent according to the budget and the real amount expended.

Activity Variances

The differences between the budgeted and actual costs of activities performed by a business.

Meals Served

The total number of individual meal portions provided or sold during a specific time frame, often used in the food service industry to measure output.