You own a stock that you think will produce a return of 11 percent in a good economy and 3 percent in a poor economy. Given the probabilities of each state of the economy occurring, you anticipate that your stock will earn 6.5 percent next year. Which one of the following terms applies to this 6.5 percent?
A) Arithmetic return
B) Historical return
C) Expected return
D) Geometric return
E) Required return

C) Expected return

Explanation:

Arithmetic return or an average return is simply a mean of all return values.

Historical return as the name suggests is the past value of return index.

The return weather profit or loss anticipated on the investment is called expected return.

Geometric return is the mean value of all the compound returns.

Required return is the return required from the investment.

answer; (15,000)workers each

answer; no individual buyer or seller has any significant impact on the market price;