You have been given this probability distribution for the holding- period return for KMP stock:Stock of the Economy Probability HPRBoom 0.30 18 %Normal growth 0.50 12 %Recession 0.20 5 %What

17/30

You have been given this probability distribution for the holding- period return for KMP stock:

Stock of the Economy Probability HPR

Boom 0.30 18 %

Normal growth 0.50 12 %

Recession 0.20 5 %

What is the expected variance for KMP stock?

69.96%

63.72%

66.04%

78.45%

77.04%

Giải thích

Chọn đáp án C

Giải thích: Variance = [0.30 (18 - 10.4)^2 + 0.50 (12 - 10.4)^2 + 0.20 (-5 - 10.4)^2] =

66.04%.