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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability 8.4 0.3 0.3 HPR 38% 21

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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability 8.4 0.3 0.3 HPR 38% 21 - 19 E() = P(s)r(s) E() - PO Var(y) = g?= P() [r() - E(r)] SD()=0 Var(r) 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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