You Have Been Given This Probability Distribution for the Holding

question 25

Multiple Choice

You have been given this probability distribution for the holding period return for XYZ stock: $$\begin{array} { l c c } \text { State of the Economy } & \text { Probability } &\text { HPR } \\\hline\text { Boom } & .30 & 18 \% \\\text { Normal growth } & .50 & 12 \% \\\text { Recession } & .20 & - 5 \%\end{array}$$
What is the expected holding period return for XYZ stock?

• A) 11.67%
• B) 8.33%
• C) 10.4%
• D) 12.4%
• E) 7.88%