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You Have Been Given This Probability Distribution for the Holding

Question 11

Multiple Choice

You have been given this probability distribution for the holding period return for XYZ stock:  State of the Economy  Probability  HPR  Boom .3018% Normal growth .5012% Recession .20−5%\begin{array} { l c c } \text { State of the Economy } & \text { Probability } & \text { HPR } \\\hline \text { Boom } & .30 & 18 \% \\\text { Normal growth } & .50 & 12 \% \\\text { Recession } & .20 & - 5 \%\end{array}
What is the expected standard deviation for XYZ stock?


A) 2.07%
B) 9.96%
C) 7.04%
D) 1.44%
E) 8.13%

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