Solved

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

Question 19

Multiple Choice

You have been given this probability distribution for the holding-period return for a stock:  Stock of the Economy  ProbabilityHPR  Boom 0.4022% Normal growth 0.3511% Recession 0.25−9%\begin{array}{lcc} \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\%\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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q14: If a portfolio had a return of

Q15: _ is a risk measure that indicates

Q16: You have been given this probability

Q17: You purchase a share of Duke Energy

Q18: If a portfolio had a return of

Q20: You purchased a share of stock for

Q21: If the nominal return is constant, the

Q22: If the annual real rate of interest

Q23: If the annual real rate of interest

Q24: If an investment provides a 2.1% return