When using economic probabilities to compute the expected return on a stock, the result is:

Multiple Choice

• guaranteed to equal the actual return for the immediate twelve month period.

• a mathematical expectation based on a weighted average and not a guaranteed outcome.

• guaranteed to be the minimal rate of return on the stock over the next two years.

• guaranteed to equal the actual average return on the stock for the next five years.

• the actual return you should anticipate as long as the economic forecast remains constant.