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

question 16

Multiple Choice

You have been given this probability distribution for the holding-period return for KMP stock: $$\begin{array} { l c c } \text { Stock of the Economy } & \text { Probability } & \text { HPR } \\\text { Boom } & 0.30 & 18 \% \\\text { Normal growth } & 0.50 & 12 \% \\\text { Recession } & 0.20 & - 5 \% \\\hline\end{array}$$ What is the expected variance for KMP stock?

• A) 66.04%
• B) 69.96%
• C) 77.04%
• D) 63.72%
• E) 78.45%

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Definitions:

Fractured

Refers to a break, rupture, or crack in a bone, often caused by injury, stress, or disease.

Pelvis

Any basin-shaped structure; cup-shaped ring of bone at the lower end of the trunk, formed from the ossa coxal bones, sacrum, and coccyx.

Greater Sciatic Notch

A notable depression in the ilium bone of the pelvis through which the sciatic nerve passes, significant for leg movement and sensation.

Ischium

Superior bone of the coxal bone.