You have been given this probability distribution for the holding-period return for GM stock: $$\begin{array} { l c c }
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.40 & 30 \% \
\text { Normal growth } & 0.40 & 11 \% \
\text { Recession } & 0.20 & - 10 \% \
\hline
\end{array}$$ What is the expected standard deviation for GM stock?
A) 16.91%
B) 16.13%
C) 13.79%
D) 15.25%
E) 14.87%

Question

You have been given this probability distribution for the holding-period return for GM stock: $$\begin{array} { l c c } 
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.40 & 30 \% \
\text { Normal growth } & 0.40 & 11 \% \
\text { Recession } & 0.20 & - 10 \% \
\hline
\end{array}$$ What is the expected standard deviation for GM stock?
A) 16.91%
B) 16.13%
C) 13.79%
D) 15.25%
E) 14.87%

Quizplus · Accepted Answer

The Answer of You have been given this probability distribution for the holding-period return for GM stock: $$\begin{array} { l c c } 
\text { Stock of the Economy } & \text { Probability } & \text { HPR } \
\text { Boom } & 0.40 & 30 \% \
\text { Normal growth } & 0.40 & 11 \% \
\text { Recession } & 0.20 & - 10 \% \
\hline
\end{array}$$ What is the expected standard deviation for GM stock?
A) 16.91%
B) 16.13%
C) 13.79%
D) 15.25%
E) 14.87%

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