You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l }
\text { State of } & \text { Probability } & \text { HPR } \
\text { Economy } & & \
\text { Boom } & .20 & 24 \% \
\text { Normal Growth } & .45 & 15 \% \
\text { Recession } & .35 & 8 \%
\end{array}$$
-Assuming that the expected return on Cheese's stock is 14.35%,what is the standard deviation of these returns?
A)4.72%
B)6.30%
C)4.38%
D)5.74%
E)None of the above

Question

You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l } 
\text { State of } & \text { Probability } & \text { HPR } \
\text { Economy } & & \
\text { Boom } & .20 & 24 \% \
\text { Normal Growth } & .45 & 15 \% \
\text { Recession } & .35 & 8 \%
\end{array}$$
-Assuming that the expected return on Cheese's stock is 14.35%,what is the standard deviation of these returns?
A)4.72%
B)6.30%
C)4.38%
D)5.74%
E)None of the above

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for Cheese, Inc stock: $$\begin{array} { l c l } 
\text { State of } & \text { Probability } & \text { HPR } \
\text { Economy } & & \
\text { Boom } & .20 & 24 \% \
\text { Normal Growth } & .45 & 15 \% \
\text { Recession } & .35 & 8 \%
\end{array}$$
-Assuming that the expected return on Cheese's stock is 14.35%,what is the standard deviation of these returns?
A)4.72%
B)6.30%
C)4.38%
D)5.74%
E)None of the above

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