Suppose there's a 50% chance of a stock rising by 20% and a 50% chance of it falling by 20%. What is the expected rate of return on the stock?

A) -20%
B) 0%
C) 10%
D) 20%


B

Economics

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Which of the following is not a tax-deferred saving method?

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Manufacturers of packaged foods are not required to list nutritional contents on their labels

Indicate whether the statement is true or false

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Why can't two firms in a Prisoners' Dilemma enforce a better outcome that has higher payoffs?

A) Under an outcome with higher payoffs, the outcome is not a Nash equilibrium and each firm has an incentive to change their actions. B) Barriers to entry C) Barriers to exit D) The Nash equilibrium in a Prisoners' Dilemma has the highest possible payoffs for both firms.

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The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by

A. the price system. B. the industries that produce the goods. C. the central planners. D. citizens with political power.

Economics