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 %Wha

16/30

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 standard deviation for KMP stock?

7.25%

8.13%

7.79%

6.91%

8.85%

Giải thích

Chọn đáp án B

Giải thích: s = [0.30 (18 - 10.4)^2 + 0.50 (12 - 10.4)^2 + 0.20 (-5 - 10.4)^2]^1/2 = 8.13%