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Question 1 Suppose your expectations regarding a stock price are as follows: State of the Market: Probability; Ending Price; HPR(including dividends) Boom: 0.35; $140; 44.5%
Question 1
Suppose your expectations regarding a 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%
Compute the mean and standard deviation of the HPR
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