Asked by Melissa Gonzalez on Jun 04, 2024
Verified
Which one of the following events is considered part of the expected return on Fido stock?
A) The president of Fido suddenly announced that the firm is going to cut production effective immediately.
B) The government just announced a tax cut which will directly impact the sales of Fido.
C) The management of Fido announced their ten-year plan for expansion five years ago.
D) The price of Fido stock suddenly dropped due to rumours concerning company fraud.
E) Fido just won a major government contract which they had not anticipated winning.
Tax Cut
A reduction in the rate of taxes imposed by the government.
Government Contract
A legal agreement between a government entity and a private company for goods or services, often involving specific regulatory requirements.
Company Fraud
Illegal activities conducted by a company or its representatives, intended to deceive investors, authorities, or the public for financial gain.
- Comprehend the factors affecting expected returns on stocks and how they are calculated.
Verified Answer
Learning Objectives
- Comprehend the factors affecting expected returns on stocks and how they are calculated.
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