You Have Been Given This Probability Distribution for the Holding

question 11

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 standard deviation for XYZ stock?

• A) 2.07%
• B) 9.96%
• C) 7.04%
• D) 1.44%
• E) 8.13%