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

question 47

Multiple Choice

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

• A) 11.67%
• B) 8.33%
• C) 9.56%
• D) 12.4%
• E) None of the options are correct.

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Definitions:

Electric Shock

A sudden discharge of electricity through a part of the body, often used in experiments or as a deterrent.

Yelling

The act of shouting or calling out loudly and forcefully, often as a means of expressing strong emotion or commanding attention.

Negative Reinforcement

The strengthening of a behavior because a negative condition is stopped or avoided as a consequence of the behavior.

Punishment

A consequence that decreases the likelihood of a behavior being repeated in the future, often used in behavior management strategies.