You have been given this probability distribution for the holding-period return for GM stock: $\begin{array}{lcc}
\text { Stock of the Economy } & \text { Probability} & \text {HPR } \
\text { Boom } &0.40&30\%\
\text { Normal growth } &0.40&11\%\
\text { Recession }&0.20&-10\%
\end{array}$

What is the expected holding-period return for GM stock?
A) 10.4%
B) 11.4%
C) 12.4%
D) 13.4%
E) 14.4%

Question

You have been given this probability distribution for the holding-period return for GM stock: $\begin{array}{lcc}
  \text { Stock of the Economy } & \text {  Probability} & \text {HPR  } \
 \text { Boom } &0.40&30\%\
 \text { Normal growth } &0.40&11\%\
\text { Recession }&0.20&-10\%
\end{array}$

What is the expected holding-period return for GM stock?
A) 10.4%
B) 11.4%
C) 12.4%
D) 13.4%
E) 14.4%

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for GM stock: $\begin{array}{lcc}
  \text { Stock of the Economy } & \text {  Probability} & \text {HPR  } \
 \text { Boom } &0.40&30\%\
 \text { Normal growth } &0.40&11\%\
\text { Recession }&0.20&-10\%
\end{array}$

What is the expected holding-period return for GM stock?
A) 10.4%
B) 11.4%
C) 12.4%
D) 13.4%
E) 14.4%

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