Louis Has Invested $1 000 in the Stock Market

question 55

Multiple Choice

Louis has invested $1 000 in the stock market.At the end of 1 year,there is a 30% chance that his stock will be worth only $800 and a 70% chance that it will be worth $1 200.The expected value of his stock at the end of 1 year is:

• A) $1 000.
• B) $1 080.
• C) $1 200.
• D) $1 160.

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Definitions:

Budget Variance

The difference between budgeted and actual figures for revenues or costs, indicating the degree of control over business operations.

Budget Variance

The difference between the budgeted amounts and the actual amounts spent or received.

Fixed Overhead Volume Variance

The difference between the budgeted and actual quantity of units produced, multiplied by the fixed overhead rate per unit.

Unfavorable

A term used to describe variances or differences that negatively impact profitability or efficiency, often indicating higher costs or lower revenue than expected.