Question

This is not a multiple choice question. Please fill in the blanks by order (A), (B), (C), (D), and (E).

(7.6) The return on any stock traded in a financial market is composed of two parts. First, the (A))return from the stock is the part of the return that shareholders in the market predict or expect. The second part of the return on the stock is the , or r)part. This is the portion that comes from , part. This is the portion that comes from revealed within the year.

Answer 1

A) Normal return B) Expected return C) Uncertain D) Risky E) Unexpected information These lines are extracted from the definition of EXPECTED AND UNEXPECTED RETURN associated with the stocks being traded between the investors in the capital market. That is, when an investor trades a stock investment in a capital market, he/she expects certain returns from such stock the stock (Part-A & B). However, sometimes due to market's good or poor performance, investors use to experience uncertain movement in it is generally derived from uncertain information (Part-E) s from the stocks traded. This is uncertain and risky in nature (Part-Cand D). As the second part is uncertain,