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

question 24

Multiple Choice

You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l } \text { State of } & \text { Probability } & \text { HPR } \\\text { Economy } & & \\\text { Boom } & .20 & 24 \% \\\text { Normal Growth } & .45 & 15 \% \\\text { Recession } & .35 & 8 \%\end{array}$$
-An investor purchased a bond 63 days ago for $980.He received $17 in interest and sold the bond for $987.What is the holding-period return on his investment?

• A)1.52%
• B)2.45%
• C)1.92%
• D)2.68%
• E)None of the above

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