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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability 0.2 0.3 0.5 HPR 40% 20 -17 S E(r) P(s)r(s) s=1 S Var(r) = o? = Ep()[r(s) E(r)]? SD(,) = 0 = V Var(1) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) % Mean Standard deviation % Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $85 to $95.50, and the stock has paid a dividend of $13.00 per share. a. What is the remaining margin in the account? Remaining margin b-1. What is the margin on the short position? (Round your answer to 2 decimal places.) Short margin % b-2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? O Yes O NO c. What is the rate of return on the investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return %