An Analyst Believes That a Stock's Return Depends on the State

question 61

Multiple Choice

An analyst believes that a stock's return depends on the state of the economy,for which she has estimated the following probabilities: According to the analyst's estimates,the expected return of the stock is ____.

• A) 7.8%
• B) 11.4%
• C) 11.7%
• D) 13.0%

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Definitions:

Totally Objective

An approach or viewpoint that is completely unbiased and not influenced by personal feelings or opinions.

Standardized Format

A consistent and uniform style or structure used in the creation of documents, procedures, or data to ensure compatibility and comparability.

Minnesota Multiphasic Personality Inventory (MMPI-2)

A standardized psychometric test of adult personality and psychopathology used to identify psychological conditions.

Extraversion

A personality trait characterized by outgoingness, sociability, and a high level of engagement with the external world.