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

Question 25

Multiple Choice

You have been given this probability distribution for the holding-period return for GM stock:  Stock of the Economy  ProbabilityHPR  Boom 0.4030% Normal growth 0.4011% Recession 0.20−10%\begin{array}{lcc} \text { Stock of the Economy } & \text { Probability} & \text {HPR } \\ \text { Boom } &0.40&30\%\\ \text { Normal growth } &0.40&11\%\\\text { Recession }&0.20&-10\%\end{array}


What is the expected holding-period return for GM stock?


A) 10.4%
B) 11.4%
C) 12.4%
D) 13.4%
E) 14.4%

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