A Share of Stock Has an Expected Return of 12

question 22

Multiple Choice

A share of stock has an expected return of 12 percent and a standard deviation of 24 percent. Therefore, its coefficient of variation is

• A).50.
• B)2.0.
• C)1.0.
• D).12.

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Definitions:

Decision Alternatives

Choices available to decision-makers in a given decision-making scenario.

Decision Trees

A graphical representation used for decision-making, showing various outcomes from a series of related choices, helping to weigh options and possible consequences.

Decision Tables

A tool used in both computer programming and business decision-making that represents the logic of decision making through a matrix of conditions and the actions to be taken.

Conditional Value

A numerical value assigned to an outcome in a decision-making process, dependent on specific conditions being met.