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

question 67

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 standard deviation for KMP stock?

• A) 6.91%
• B) 8.13%
• C) 7.79%
• D) 7.25%
• E) 8.85%

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