Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession p (s)r (s) 1S= Probability 0.4 0.3 0.3 E (r) = Var (r) = o = - p (s)[r(s) - E(r)] 1S= SD (r) = o = Var (r) Required: Use above equations to compute the mean and standard deviation of the HPR on stocks. (D Round your answers to 2 decimal places.) Mean Standard deviation HPR % % 38% 21 -19

Suppose your expectations regarding the stock market are as follows: E(r)=s=1sp(s)r(s)Var(r)2=s=1sp(s)[r(s)E(r)]2SD(r)=Var(r) Required: Use above equations to compute the mean and standard deviation of the HPR on stocks. (D Round your answers to 2 decimal places.) Suppose your expectations regarding the stock market are as follows: E(r)=r=1sp(s)r(s)Var(r)2=r=1sp(s)[r(s)E(r)]2SD(r)=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.)