Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How to get ExpectedHPR=14.4 ? Thanks. You have been given this probability distribution for the holding-period return for GM stock: Stock of the Economy Boom

image text in transcribed

How to get ExpectedHPR=14.4 ? Thanks.

You have been given this probability distribution for the holding-period return for GM stock: Stock of the Economy Boom Normal growth Recession What is the expected variance for GM stock? Probability 0.40 0.40 HPR 30% 11% 10% 0.20 - Select one: A. 246.37% B. 16.13% Variance = [0.40 (30 14.4)2 +0.40 (11 14.4)2 +0.20 (-10 - 14.4)21 = 221.04%. O C. 221.04% D. 14.87% E. 200.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago

Question

7. Explain how an employee could reduce stress at work.

Answered: 1 week ago