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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.3 Normal growth 0.6 Recession 0.1 HPR 41% 24
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.3 Normal growth 0.6 Recession 0.1 HPR 41% 24 -18 E() = P(5)76) Var(-) = 72 = PO[r(s) E("P SD(r) = o = VVar (7) 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 Standard deviation %
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