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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession -1P (s)r (s) Probability 0.3 0.6 0.1
Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession -1P (s)r (s) Probability 0.3 0.6 0.1 Mean Standard deviation E (r) = Var (r) = o = SD (r) = o = Var (r) Required: 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.) P(s)[r (s)- E(r)] HPR % % 41% 24 -18
i possible can you show me how to do it.
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