Solved

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

Question 29

Multiple Choice

You have been given this probability distribution for the holding-period return for GM stock:  Stock of the Economy  Probability  HPR  Boom 0.4030% Normal growth 0.4011% Recession 0.20−10%\begin{array} { l c c } \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 \% \\\hline\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

Q12: Other things equal, an increase in the

Q28: Kurtosis is a measure of<br>A. how fat

Q31: You have been given this probability

Q32: You purchase a share of Boeing stock

Q34: If the annual real rate of interest

Q37: You purchased a share of stock for

Q41: If a portfolio had a return of

Q51: Which of the following determine(s) the level

Q58: If a portfolio had a return of

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