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Expected & Unexpected Returns on Assets: Definition & Examples

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question 1 of 3

Christa's father gave her stock in a company. If everything goes according to plan, the stock should pay about 10% every year, based on probabilities and what is known about the company. This is an example of _____ returns.

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1. ABC company just made a surprise announcement that caused their stock price to go down dramatically. What type of return of the asset is this an example of?

2. Which type of return of an asset is likely to change based on news and announcements?

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About This Quiz & Worksheet

In banking, what is the difference between expected and unexpected returns of an asset? See what you know about these differences and some examples by using the worksheet and quiz.

Quiz & Worksheet Goals

These topics are covered in these materials:

  • A type of return of an asset that is likely to change based on announcements
  • Type of market that allows trades based on surprise good news
  • An example of an unexpected return of an asset
  • Expected return of an asset

Skills Practiced

  • Information recall - access the knowledge you have gained about the different types of markets
  • Distinguishing differences - compare and contrast main topics, such as expected and unexpected returns of an asset
  • Interpreting information - verify that you can read information about an example of an unexpected return of an asset and interpret it correctly

Additional Learning

In order to learn more, utilize the lesson called Expected & Unexpected Returns on Assets: Definition & Examples. Some tasks you can complete include:

  • Figure out what a return of an asset is
  • Identify the different types of markets
  • Review examples of expected return of an asset
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