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 GM stock: $\begin{array}{lll}\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\\\text { Boom } & .40 & 30\% \\\text { Normal growth } & .40& 11\%\\\text { Recession } & .20 & -10 \%\end{array}$

-What is the expected standard deviation for GM stock?

• A)16.91%
• B)16.13%
• C)13.79%
• D)15.25%
• E)14.87%