You have been given this probability distribution for the holding-period return for Cheese, Inc. stock: $$\begin{array} { l c c }
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.20 & 24 \% \
\text { Normal growth } & 0.45 & 15 \% \
\text { Recession } & 0.35 & 8 \% \
\hline
\end{array}$$ 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 options are correct.

Question

You have been given this probability distribution for the holding-period return for Cheese, Inc. stock: $$\begin{array} { l c c } 
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.20 & 24 \% \
\text { Normal growth } & 0.45 & 15 \% \
\text { Recession } & 0.35 & 8 \% \
\hline
\end{array}$$ 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 options are correct.

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for Cheese, Inc. stock: $$\begin{array} { l c c } 
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.20 & 24 \% \
\text { Normal growth } & 0.45 & 15 \% \
\text { Recession } & 0.35 & 8 \% \
\hline
\end{array}$$ 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 options are correct.

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