You have been given this probability distribution for the holding-period return for GM stock: $\begin{array}{lll}
\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\
\text { Boom } & .40 & 30\% \
\text { Normal growth } & .40& 11\%\
\text { Recession } & .20 & -10 \%
\end{array}$

-What is the expected variance for GM stock?
A)200.00%
B)221.04%
C)246.37%
D)14.87%
E)16.13%

Question

You have been given this probability distribution for the holding-period return for GM stock: $\begin{array}{lll}
\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\
\text { Boom } & .40 & 30\% \
\text { Normal growth } & .40& 11\%\
\text { Recession } & .20 & -10 \%
\end{array}$

-What is the expected variance for GM stock?
A)200.00%
B)221.04%
C)246.37%
D)14.87%
E)16.13%

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for GM stock: $\begin{array}{lll}
\underline{\text { State of the Economy} } &\underline{ \text { Probability} } & \underline{\text { HPR } }\
\text { Boom } & .40 & 30\% \
\text { Normal growth } & .40& 11\%\
\text { Recession } & .20 & -10 \%
\end{array}$

-What is the expected variance for GM stock?
A)200.00%
B)221.04%
C)246.37%
D)14.87%
E)16.13%

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