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HPR Ending (including State of the Market Probability Price dividends) Boom 0.20 $ 140 50.5 Normal growth 0.22 11 20.5 Recession 0.58 18.5 80 -

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HPR Ending (including State of the Market Probability Price dividends) Boom 0.20 $ 140 50.5 Normal growth 0.22 11 20.5 Recession 0.58 18.5 80 - Use the equations E (O) = Ep(s) r(s) and o = Ep (s) [rs) - EM? 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 % %

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