Moodle 13 Quiz 1- autor Finis 2- Tim a- You buy a stock for $60 and sell it for $90 after five years with a return of 2%. Later, the stock earns 10% the first year, 15% the second year and lost 5% for the coming 3 years a-Evaluate the case by computing and explaining the Holding Period Return (HPR) (1 point) b- Compute the total compound return (1 point) Evaluate the following case: there is a 50% probability that the Plum's Company sales will be $10 million net year, a 20% probability that they will be $5 million, and a $30 million probability that they will $3 million Evaluate the case by computing the expected return of Plum Company next year. (1 point) b- Evaluate the case by computing the standard deviation of Plum Company next year (1 point) 3- Given the below distribution for KMP stock: State of the Economy Probability HPR Boom 0.30 18% Normal Growth 0.50 12% Recession 0.20 -5% a- Compute the expected holding period for KMP stock? (1 point) b- Compute the standard deviation for KMP stock? (1point) Moodle 13 Quiz 1- autor Finis 2- Tim a- You buy a stock for $60 and sell it for $90 after five years with a return of 2%. Later, the stock earns 10% the first year, 15% the second year and lost 5% for the coming 3 years a-Evaluate the case by computing and explaining the Holding Period Return (HPR) (1 point) b- Compute the total compound return (1 point) Evaluate the following case: there is a 50% probability that the Plum's Company sales will be $10 million net year, a 20% probability that they will be $5 million, and a $30 million probability that they will $3 million Evaluate the case by computing the expected return of Plum Company next year. (1 point) b- Evaluate the case by computing the standard deviation of Plum Company next year (1 point) 3- Given the below distribution for KMP stock: State of the Economy Probability HPR Boom 0.30 18% Normal Growth 0.50 12% Recession 0.20 -5% a- Compute the expected holding period for KMP stock? (1 point) b- Compute the standard deviation for KMP stock? (1point)