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State of the Economy Probability Boom 0.4 Normal growth 0.5 Recession 0.1 HPR 43% 23 -16 10 points E() = P(s)r eBook Print References Var(-)

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State of the Economy Probability Boom 0.4 Normal growth 0.5 Recession 0.1 HPR 43% 23 -16 10 points E() = P(s)r eBook Print References Var(-) = 72 = PW[r(s) E(1) s=1 SD(r) = 0 = V Var (1) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate Round your answers to 2 decimal places.) Mean % Standard deviation %

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