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Please solve this part which is wrong. RE Suppose your expectations regarding the stock market are as follows: Probability 0.3 State of the Economy Boom

Please solve this part which is wrong.

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RE Suppose your expectations regarding the stock market are as follows: Probability 0.3 State of the Economy Boom Normal growth Recession HPR 36% 18 - 12 0.5 0.2 E(r) = P(s)r(s) s=1 S Var(r) = o2 = PC)[r(s) E(r) S=1 SD(r) = o = Var(r) 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 17.40 % Standard deviation 12.87 %

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