You have been given this probability distribution for the holding period return for XYZ stock: $$\begin{array} { l c c }
\text { State of the Economy } & \text { Probability } &\text { HPR } \
\hline\text { Boom } & .30 & 18 \% \
\text { Normal growth } & .50 & 12 \% \
\text { Recession } & .20 & - 5 \%
\end{array}$$
What is the expected holding period return for XYZ stock?

Question

You have been given this probability distribution for the holding period return for XYZ stock: $$\begin{array} { l c c } 
\text { State of the Economy } & \text { Probability } &\text { HPR }  \
\hline\text { Boom } & .30 & 18 \% \
\text { Normal growth } & .50 & 12 \% \
\text { Recession } & .20 & - 5 \%
\end{array}$$
What is the expected holding period return for XYZ stock?

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding period return for XYZ stock: $$\begin{array} { l c c } 
\text { State of the Economy } & \text { Probability } &\text { HPR }  \
\hline\text { Boom } & .30 & 18 \% \
\text { Normal growth } & .50 & 12 \% \
\text { Recession } & .20 & - 5 \%
\end{array}$$
What is the expected holding period return for XYZ stock?

You Have Been Given This Probability Distribution for the Holding