Use the Table for the Question(s)below

question 44

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-Which of the following statements is FALSE?

• A)The expected return is the return that actually occurs over a particular time period.
• B)If you hold the stock beyond the date of the first dividend,then to compute you return you must specify how you invest any dividends you receive in the interim.
• C)The average annual return of an investment during some historical period is simply the average of the realized returns for each year.
• D)The realized return is the total return we earn from dividends and capital gains,expressed as a percentage of the initial stock price.

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Definitions:

Validity

The quality of being logically or factually sound; in logic, it refers to an argument where the conclusion logically follows from the premises.

Validity Rules

Refer to the principles or criteria used to determine whether arguments or reasoning processes are logically sound.

Fallacy

A flawed argument that uses poor reasoning or logical errors.

Major Premise

The first principle or statement in a deductive argument from which a conclusion is derived.