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

question 4

Multiple Choice

You have been given this probability distribution for the holding-period return for Cheese, Inc. stock: $$\begin{array} { l c c } \text { Stock of the Economy } & \text { Probability } & \text { HPR } \\\text { Boom } & 0.20 & 24 \% \\\text { Normal growth } & 0.45 & 15 \% \\\text { Recession } & 0.35 & 8 \% \\\hline\end{array}$$ 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 options are correct.

---

Definitions:

Lower-Class

A social class often characterized by low socioeconomic status and limited access to resources.

Marital Rape

Non-consensual sex imposed by a spouse, legally recognized as a form of rape in many jurisdictions.

Child Sexual Abuse

The involvement of a child in sexual activity that he or she does not fully comprehend or to which the child is unable to give informed consent.

Risk Factors

are characteristics or conditions that increase the likelihood of developing a disease or injury.