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

question 29

Multiple Choice

You have been given this probability distribution for the holding-period return for GM stock: $$\begin{array} { l c c } \text { Stock of the Economy } & \text { Probability } & \text { HPR } \\\text { Boom } & 0.40 & 30 \% \\\text { Normal growth } & 0.40 & 11 \% \\\text { Recession } & 0.20 & - 10 \% \\\hline\end{array}$$ What is the expected standard deviation for GM stock?

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

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