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

question 19

Multiple Choice

You have been given this probability distribution for the holding-period return for a stock: $\begin{array}{lcc} \text { Stock of the Economy } & \text { Probability} & \text {HPR } \\ \text { Boom } &0.40&22\%\\ \text { Normal growth } &0.35&11\%\\\text { Recession }&0.25&-9\%\end{array}$



What is the expected variance for the stock?

• A) 142.07%
• B) 189.96%
• C) 177.04%
• D) 128.17%
• E) None of the options are correct.

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Definitions:

Confidence Interval

An interval of values within which there is a given level of confidence (e.g., 95%) where the population value lies.

Increased Accuracy

The enhancement of precision or correctness in measurement, observation, or analysis.

Simple Random Sampling

A method of selecting a sample in which every member of the population has an equal chance of being chosen.

Youngsters

Youngsters refers to children and teenagers, often implying a focus on their development, education, and socialization.