Dothan Inc

question 44

Multiple Choice

Dothan Inc.'s stock has a 25% chance of producing a 16% return,a 50% chance of producing a 12% return,and a 25% chance of producing a -18% return.What is the firm's expected rate of return? Do not round your intermediate calculations.

• A) 4.51%
• B) 5.50%
• C) 4.68%
• D) 4.29%
• E) 6.38%

---

Definitions:

Regression

A geological process by which areas of submerged seafloor are exposed above sea level, often due to sea-level fall or land uplift.

Shale

A fine-grained sedimentary rock formed from clay and mud, characterized by its ability to split into thin layers along natural fractures.

Sandstone

A sedimentary rock consisting of sand particles bonded together by natural cements such as silica or calcium carbonate.

Erosionally Resistant Cliffs

Cliffs that demonstrate a high resistance to weathering and erosion, often due to their geological composition, maintaining steep faces over time.