You have been given this probability distribution for the holding-period return for GM stock: What is the expected variance for GM stock
A)200.00%
B)221.04%
C)246.37%
D)14.87%
E)16.13%

Name: You have been given this probability distribution for the holding-period return for GM stock: What is the expected variance for GM stock A)200.00% B)221.04% C)246.37% D)14.87% E)16.13%
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Question

You have been given this probability distribution for the holding-period return for GM stock:  What is the expected variance for GM stock
A)200.00% 
B)221.04% 
C)246.37% 
D)14.87% 
E)16.13%

Quizplus · Accepted Answer

Variance = [.40 (30 - 14.4)² + .40 (11 - 14.4)² + .20 (-10 - 14.4)²] = 221.04%.

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