You have been given this probability distribution for the holding-period return for a stock: $$\begin{array} { l c c }
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.40 & 22 \% \
\text { Normal growth } & 0.35 & 11 \% \
\text { Recession } & 0.25 & - 9 \% \
\hline
\end{array}$$ What is the expected standard deviation for the stock?
A) 2.07%
B) 9.96%
C) 7.04%
D) 1.44%
E) None of the options are correct.

Question

You have been given this probability distribution for the holding-period return for a stock: $$\begin{array} { l c c } 
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.40 & 22 \% \
\text { Normal growth } & 0.35 & 11 \% \
\text { Recession } & 0.25 & - 9 \% \
\hline
\end{array}$$ What is the expected standard deviation for the stock?
A) 2.07%
B) 9.96%
C) 7.04%
D) 1.44%
E) None of the options are correct.

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for a stock: $$\begin{array} { l c c } 
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.40 & 22 \% \
\text { Normal growth } & 0.35 & 11 \% \
\text { Recession } & 0.25 & - 9 \% \
\hline
\end{array}$$ What is the expected standard deviation for the stock?
A) 2.07%
B) 9.96%
C) 7.04%
D) 1.44%
E) None of the options are correct.

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