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

question 1

Multiple Choice

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

• A) 142.07%
• B) 189.96%
• C) 177.04%
• D) 128.17%
• E) None of the options are correct.

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