You have been given this probability distribution for the holding-period return for KMP stock: What is the expected variance for KMP stock
A)66.04%
B)69.96%
C)77.04%
D)63.72%
E)78.45%

Name: You have been given this probability distribution for the holding-period return for KMP stock: What is the expected variance for KMP stock A)66.04% B)69.96% C)77.04% D)63.72% E)78.45%
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Question

You have been given this probability distribution for the holding-period return for KMP stock:  What is the expected variance for KMP stock
A)66.04% 
B)69.96% 
C)77.04% 
D)63.72% 
E)78.45%

Quizplus · Accepted Answer

Variance = [.30 (18 - 10.4)² + .50 (12 - 10.4)² + .20 (-5 - 10.4)²] = 66.04%.

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