Solved

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

Question 31

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 r } \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 variance for GM stock?


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

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

Q29: You have been given this probability

Q32: You purchase a share of Boeing stock

Q33: When a distribution is positively skewed,<br>A) standard

Q34: If the annual real rate of interest

Q37: You purchased a share of stock for

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

Q58: If a portfolio had a return of

Q82: Over the past year, you earned a