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

question 25

Multiple Choice

You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l } \text { State of } & \text { Probability } & \text { HPR } \\\text { Economy } & & \\\text { Boom } & .20 & 24 \% \\\text { Normal Growth } & .45 & 15 \% \\\text { Recession } & .35 & 8 \%\end{array}$$
-Assuming that the expected return on Cheese's stock is 14.35%,what is the standard deviation of these returns?

• A)4.72%
• B)6.30%
• C)4.38%
• D)5.74%
• E)None of the above

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