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

question 7

Multiple Choice

You have been given this probability distribution for the holding-period return for a stock: $\begin{array}{lll}\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\\\text { Boom } & .40 & 22\% \\\text { Normal growth } & .35 & 11\%\\\text { Recession } & .25 & -9 \%\end{array}$

-What is the expected standard deviation for the stock?

• A)2.07%
• B)9.96%
• C)7.04%
• D)1.44%
• E)None of the above

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