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 variance for KMP stock?

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