Expected holding-period return for abc stock

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

State of Economy Probability HPR

Boom 0.25 20%

Average 0.50 11%

Recession 0.25 -8%

(a) What is the expected holding-period return for ABC stock?

(b) What is the expected standard deviation for ABC stock?

(c) What is the expected variance for ABC stock?

Reference no: EM132816514

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