You have been given this probability distribution for the holding-period return for KMP stock: What is the expected holding-period return for KMP stock
A)10.40%
B)9.32%
C)11.63%
D)11.54%
E)10.88%

Name: You have been given this probability distribution for the holding-period return for KMP stock: What is the expected holding-period return for KMP stock A)10.40% B)9.32% C)11.63% D)11.54% E)10.88%
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Question

You have been given this probability distribution for the holding-period return for KMP stock:  What is the expected holding-period return for KMP stock
A)10.40% 
B)9.32% 
C)11.63% 
D)11.54% 
E)10.88%

Quizplus · Accepted Answer

HPR = .30 (18%) + .50 (12%) + .20 (-5%) = 10.4%.

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