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% 66.04% O 78.45% O 77.04% 63.72%

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% 66.04% O 78.45% O 77.04% 63.72%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 17MC: Now assume that the stock is currently selling at $30.29. What is its expected rate of return?

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Question

am. 151.

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%
66.04%
O 78.45%
O 77.04%
63.72%

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