You have been given this probability distribution for the holding-period return for a stock: $\begin{array}{lll}
\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\
\text { Boom } & .40 & 22\% \
\text { Normal growth } & .35 & 11\%\
\text { Recession } & .25 & -9 \%
\end{array}$

-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 above

Question

You have been given this probability distribution for the holding-period return for a stock: $\begin{array}{lll}
\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\
\text { Boom } & .40 & 22\% \
\text { Normal growth } & .35 & 11\%\
\text { Recession } & .25 & -9 \%
\end{array}$

-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 above

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for a stock: $\begin{array}{lll}
\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\
\text { Boom } & .40 & 22\% \
\text { Normal growth } & .35 & 11\%\
\text { Recession } & .25 & -9 \%
\end{array}$

-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 above

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