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: $\begin{array}{lll}\underline{\text { State of the Economy }} & \underline{\text { Probability }} &\underline{ \text { HPR } }\\\text { Boom } & .30 & 18\% \\\text { Normal growth } & .50 & 12\%\\\text { Recession } & .20 & -5\%\end{array}$


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

A) 10.40%
B) 9.32%
C) 11.63%
D) 11.54%
E) 10.88%