Solved

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

Question 76

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 standard deviation for GM stock?


A) 16.91%
B) 16.13%
C) 13.79%
D) 15.25%
E) 14.87%

Correct Answer:

verifed

Verified

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

Related Questions

Q71: Annual percentage rates (APRs) are computed using<br>A)

Q72: If a portfolio had a return of

Q73: Which of the following statement(s) is(are) true?<br>A)

Q74: If an investment provides a 0.78% return

Q75: You have been given this probability

Q77: You purchased a share of stock for

Q78: Over the past year, you earned a

Q79: "Bracket Creep" happens when<br>A) tax liabilities are

Q80: You have been given this probability

Q81: Coca Cola stock has the following