You have been given this probability distribution for the holding-period return for a stock: Stock of the Economy Probability HPR Boom 0.40 22 % Normal growth 0.35 11 % Recession 0.25 – 9 % What is the expected standard deviation for the stock? Multiple Choice 7.04% None of the options are correct. 2.07% 9.96% 1.44%

You have been given this probability distribution for the holding-period return for a stock: Stock of the Economy Probability HPR Boom 0.40 22 % Normal growth 0.35 11 % Recession 0.25 – 9 % What is the expected standard deviation for the stock? Multiple Choice 7.04% None of the options are correct. 2.07% 9.96% 1.44%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...

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Stock of the Economy	Probability	HPR
Boom		0.40		22	%
Normal growth		0.35		11	%
Recession		0.25	–	9	%