The expected return on a stock given various states of the economy is equal to the:
A. highest expected return given any economic state.
B. arithmetic average of the returns for each economic state.
C. summation of the individual expected rates of return.
D. weighted average of the returns for each economic state.
E. return for the economic state with the highest probability of occurrence.
Ans: D. weighted average of the returns for each economic state.
Business
You might also like to view...
The growing number of Web sites and blogs devoted to excessive weight loss illustrates the problem of bulimia and group dieting
Indicate whether the statement is true or false
Business
Which of the following is required by the Fair Labor Standards Act?
(a) payment for vacations (b) payment for sick leave (c) extra payment for overtime work (d) extra payment for weekend and holiday work
Business