What is mean and standard deviation of the holding period

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Question - The probability of an expansion period is 30% and the predicted holding period return is 44.00%.

The probability of a normal period is 40% and the predicted holding period return is 14.00%.

The probability of a contractionary period is 30% and the predicted holding period return is -16.00%.

Using these scenarios, what is the mean and standard deviation of the holding period return?

A. Mean = 16% and SD = 24.51%

B. Mean = 15% and SD = 23.82%

C. Mean = 15% and SD = 23.82%

D. Mean = 14% and SD = 23.24%

Reference no: EM133069456

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