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

Multiple Choice

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

A) 10.40%
B) 9.32%
C) 11.63%
D) 11.54%
E) 10.88%