What is the expected holding-period return for KMP stock?

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







A. 10.40%

B. 9.32%

C. 11.63%

D. 11.54%

E. 10.88%


A. 10.40%

HPR = 0.30 (18%) + 0.50 (12%) + 0.20 (–5%) = 10.4%.

Business

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