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

question 80

Multiple Choice

You have been given this probability distribution for the holding-period return for KMP stock: $\begin{array}{lcc}\text { Stock of the Economy } & \text { Probability } & \text { HPR } \\\text { Boom } & 0.30 & 18\% \\\text { Normal growth } & 0.50 & 12\% \\\text { Recession } & 0.20 & - 5\%\end{array}$ What is the expected holding-period return for KMP stock?

• A) 10.40%
• B) 9.32%
• C) 11.63%
• D) 11.54%
• E) 10.88%

---

Definitions:

Nominal Group Technique

A structured method for group brainstorming that encourages individual participation and idea generation.

Delphi Technique

A method used to reach a consensus among a panel of experts through a series of questionnaires interspersed with feedback summaries.

Chair Multiparty Negotiation

A process where a central figure or chairperson facilitates negotiations involving multiple parties to achieve a mutual agreement.

Responsibility

The obligation to carry out duties correctly and the accountability for the outcomes of those actions.