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

Question 57

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 variance for GM stock?


A) 200.00%
B) 221.04%
C) 246.37%
D) 14.87%
E) 16.13%

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