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

question 78

Multiple Choice

You have been given this probability distribution for the holding-period return for KMP stock: $\begin{array}{lll}\underline{\text { State of the Economy }} & \underline{\text { Probability }} &\underline{ \text { HPR } }\\\text { Boom } & .30 & 18\% \\\text { Normal growth } & .50 & 12\%\\\text { Recession } & .20 & -5\%\end{array}$


-What is the expected variance for KMP stock?

• A)66.04%
• B)69.96%
• C)77.04%
• D)63.72%
• E)78.45%

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