Please explain how to solve question 31

.

Use the information in the following table for questions 30 and 31. Assume that the expected change in the $/ exchange rate, x(t) = 5% over the same holding period. You are given the holding-period return (HPR) for the British stock BP for the three possible future states of the economy: State of the economy Probability HPR of BP Boom 0.3 18% Normal Growth 0.5 12% Recession 0.2 -5% 30. (4 points) What is the expected holding-period return for holding BP stock for a UK investor? A. 10.40% B. 9.32% C. 11.63% D. 11.54% E. None of the above. 31. (4 points) What is the expected holding-period return for holding BP stock for a US investor? A. 17.21% B. 14.79% C. 17.12% D. 15.92% E. None of the above