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: $$\begin{array} { l c c } \text { Stock of the Economy } & \text { Probability } & \text { HPR } \\\text { Boom } & 0.30 & 18 \% \\\text { Normal growth } & 0.50 & 12 \% \\\text { Recession } & 0.20 & - 5 \% \\\hline\end{array}$$ What is the expected variance for KMP stock?

A) 66.04%
B) 69.96%
C) 77.04%
D) 63.72%
E) 78.45%