You have been given this probability distribution for the holding-period return for a stock: What is the expected holding-period return for the stock
A)11.67%
B)8.33%
C)9.56%
D)12.4%
E)None of the options

Name: You have been given this probability distribution for the holding-period return for a stock: What is the expected holding-period return for the stock A)11.67% B)8.33% C)9.56% D)12.4% E)None of the options
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

You have been given this probability distribution for the holding-period return for a stock:  What is the expected holding-period return for the stock
A)11.67% 
B)8.33% 
C)9.56% 
D)12.4% 
E)None of the options

Quizplus · Accepted Answer

HPR = .40 (22%) + .35 (11%) + .25 (-9%) = 10.4%.

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