Question
7. Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.35 $140 44.5%
7. Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.35 $140 44.5% Normal growth 0.30 110 14.0 Recession 0.35 80 16.5 Use Equations 5.11 and 5.12 to compute the mean and standard deviation of the HPR on stocks.
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Essential Finance Guide
Authors: DK Publishing
1st Edition
078948157X, 978-0789481573
