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

question 75

Multiple Choice

You have been given this probability distribution for the holding-period return for Cheese, Inc. stock:  Stock of the Economy  ProbabilityHPR  Boom 0.2024% Normal growth 0.4515% Recession 0.358%\begin{array}{lcc} \text { Stock of the Economy } & \text { Probability} & \text {HPR } \\ \text { Boom } &0.20&24\%\\ \text { Normal growth } &0.45&15\%\\\text { Recession }&0.35&8\%\end{array}

Assuming that the expected return on Cheese's stock is 14.35%, what is the standard deviation of these returns?

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Definitions:

Schema

A cognitive framework or concept that helps organize and interpret information from the world around us, allowing for understanding and prediction of experiences.

Clustering

A technique used in various fields such as statistics, machine learning, and data mining to group objects based on their similarities.

Schemata

Mental structures that represent generalized ideas or concepts that are used to organize and interpret information.

Semantic Network

A theoretical structure that illustrates the relationships between ideas in a form of networks based on their meanings.

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