PLEASE ANSWER ENTIRE QUESTION

Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability 0.20 0.29 0.51 Ending Price $ 140 110 80 HPR (including dividends) 47.5% 13.0 -20.0 Use the equations E (r) = {p (s) r(s) and o? = Ep (s) [r(s) E(r)]? 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