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 GM stock: $\begin{array}{lll}\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\\\text { Boom } & .40 & 30\% \\\text { Normal growth } & .40& 11\%\\\text { Recession } & .20 & -10 \%\end{array}$

-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%