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You Have Been Given This Probability Distribution for the Holding-Period

question 76

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You have been given this probability distribution for the holding-period return for GM stock:  Stock of the Economy  ProbabilityHPR  Boom 0.4030% Normal growth 0.4011% Recession 0.2010%\begin{array}{lcc} \text { Stock of the Economy } & \text { Probability} & \text {HPR } \\ \text { Boom } &0.40&30\%\\ \text { Normal growth } &0.40&11\%\\\text { Recession }&0.20&-10\%\end{array}

What is the expected standard deviation for GM stock?

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Definitions:

Extracting

The process of removing or obtaining a resource from its source.

Unit of Resource

A specific quantity of a resource or input used in the production of goods or services.

Deforestation

The removal of a forest or stand of trees from land which is then converted to a non-forest use, often resulting in ecological imbalance.

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