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

question 23

Multiple Choice

You have been given this probability distribution for the holding-period return for a stock: $$\begin{array} { l c c } \text { Stock of the Economy } & \text { Probability } & \text { HPR } \\\text { Boom } & 0.40 & 22 \% \\\text { Normal growth } & 0.35 & 11 \% \\\text { Recession } & 0.25 & - 9 \% \\\hline\end{array}$$ 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 options are correct.

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Definitions:

Sherman Act

A landmark federal statute in the U.S. antitrust law prohibiting monopolistic practices and promoting competition.

Restrain Trade

Involves activities or agreements that restrict or limit competition within a market, often considered illegal under antitrust laws.

Antitrust Violations

Illegal activities under antitrust laws that lead to unfair competition, such as price fixing, monopolies, and other practices that significantly reduce market competition.

Sherman Act

A foundational piece of antitrust legislation in the United States, aimed at preventing monopolies and promoting competition.