Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession E (r) = p (s)r (s) Var (r) = o = p (s)[r (s)- E (r)] SD (r) = 6 = 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.) Mean Standard deviation Probability 0.2 0.3 0.5 % % HPR 34% 19 -14

Suppose your expectations regarding the stock market are as follows: E(r)==1vp(s)r(s)Var(r)2=imup(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.)