A stock's price is $20 at the beginning of a year. There is a 25 percent chance that the price will be $17 at the end of the year, and a 75 percent chance that the price will be $25 at the end of the year. The stock will pay a dividend of $3 during the year. The standard deviation of the return on the stock is ____ percent (rounded to the nearest percentage point).

A. 10
B. 12
C. 15
D. 17


Answer: D

Business

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Rising promotion costs and shrinking profit margins are the result of ________

A) new and improved technology B) disintermediation C) industry convergence D) privatization E) heightened competition

Business

_____ are often designed to quickly present predefined business metrics, such as occupancy ratios in hotels and hospitals, or inventory turns in retail.

A. Performance indicators B. Dashboards C. Toolboxes D. Shared whiteboards

Business

Indicate whether each of the following statements is true or false.Estimated cost data must often be used in making decisions because actual cost information is not yet available.  Managers often accumulate both estimated and actual cost data for the same cost object.  A direct cost must be allocated to a cost object.  For a department in a retail store, cost of goods sold is a direct cost.  Determining whether a cost is direct or indirect depends on the selection of cost object.  

What will be an ideal response?

Business

If a manager is going to try to improve the performance of an adversarial employee, what is the recommended method of experimentation?

a. Supervise them less closely. b. Give them more responsibility. c. Put them in close contact with fence-sitters. d. Reduce the amount of work assigned to them.

Business