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1. Suppose your expectations regarding the stock market are as follows: E(r)=s=1Sp(s)r(s)Var(r)2=s=1Sp(s)[r(s)E(r)]2SD(r)=Var(r) Use above equations to compute the mean and standard deviation of the HPR
1. Suppose your expectations regarding the stock market are as follows: E(r)=s=1Sp(s)r(s)Var(r)2=s=1Sp(s)[r(s)E(r)]2SD(r)=Var(r) Use above equations to compute the mean and standard deviation of the HPR on stocks
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