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 and not an actual anticipated outcome.
E)the actual return you will receive.

Question

Quizplus · Accepted Answer

The expected return on a stock that is computed using economic probabilities is a mathematical expectation and not an actual anticipated outcome. It is based on forecasts and predictions, and cannot guarantee any specific rate of return.

The Expected Return on a Stock That Is Computed Using