Two Stocks, a and B, Have Expected Returns for One $- 10 \%$

question 9

Multiple Choice

Two stocks, A and B, have expected returns for one year of $- 10 \%$ and $+ 10 \%$ respectively. The stocks have identical prices of $100 each, do not pay dividends, and the one-year risk-free rate of return is 2% in simple terms. The one-year forward prices of the two stocks are:

• A) A: 90; B: 110
• B) A: 92; B: 112
• C) A; 102; B: 102
• D) A: 112; B: 112

Analyze the legal responsibilities of businesses in service industries and their potential liability.

Understand the concept of vicarious liability in workplace and customer altercations.

Identify actions and defenses related to breach of confidence and confidentiality.

Understand the importance of legal distinctions in tort actions, including the difference between lawful competition and unfair competition.

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Definitions:

Serial Position Effect

The faster learning and greater recall of items at the beginning and end of a list rather than at the middle of the list.

Recall

The act of retrieving information or memories from one's past without the aid of specific cues for retrieval.

List Learning

is a memory process that involves remembering a series of items or elements in a particular order.

Sensory Memory

A type of memory that holds sensory information for a few seconds after the item is perceived.