You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l }
\text { State of } & \text { Probability } & \text { HPR } \
\text { Economy } & & \
\text { Boom } & .20 & 24 \% \
\text { Normal Growth } & .45 & 15 \% \
\text { Recession } & .35 & 8 \%
\end{array}$$
-An investor purchased a bond 45 days ago for $985.He received $15 in interest and sold the bond for $980.What is the holding-period return on his investment?
A)1.52%
B)0.50%
C)1.92%
D)0.01%
E)None of the above

Question

You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l } 
\text { State of } & \text { Probability } & \text { HPR } \
\text { Economy } & & \
\text { Boom } & .20 & 24 \% \
\text { Normal Growth } & .45 & 15 \% \
\text { Recession } & .35 & 8 \%
\end{array}$$
-An investor purchased a bond 45 days ago for $985.He received $15 in interest and sold the bond for $980.What is the holding-period return on his investment?
A)1.52%
B)0.50%
C)1.92%
D)0.01%
E)None of the above

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l } 
\text { State of } & \text { Probability } & \text { HPR } \
\text { Economy } & & \
\text { Boom } & .20 & 24 \% \
\text { Normal Growth } & .45 & 15 \% \
\text { Recession } & .35 & 8 \%
\end{array}$$
-An investor purchased a bond 45 days ago for $985.He received $15 in interest and sold the bond for $980.What is the holding-period return on his investment?
A)1.52%
B)0.50%
C)1.92%
D)0.01%
E)None of the above

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