The expected return on a stock that is computed using economic probabilities is:
A) guaranteed to equal the actual average return on the stock for the next five years.
B) guaranteed to be the minimal rate of return on the stock over the next two years.
C) guaranteed to equal the actual return for the immediate twelve month period.
D) a mathematical expectation based on a weighted average and not an actual anticipated outcome.
E) the actual return you should anticipate as long as the economic forecast remains constant.
Correct Answer:
Verified
Q4: A portfolio is:
A)the standard deviation of returns
Q5: The beta of a security is calculated
Q8: The slope of an asset's security market
Q8: Standard deviation measures _ risk.
A)nondiversifiable
B)total
C)unsystematic
D)economic
E)systematic
Q9: If investors possess homogeneous expectations over all
Q9: The percentage of a portfolio's total value
Q10: The risk premium for an individual security
Q11: The portfolio expected return considers which of
Q12: You are considering purchasing stock S.This stock
Q16: When computing the expected return on a
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