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Suppose your expectations regarding the stock market are as follows: 0.2 State of the Economy Probability Boom Normal growth 0.6 Recession 0.2 HPR 42% 23
Suppose your expectations regarding the stock market are as follows: 0.2 State of the Economy Probability Boom Normal growth 0.6 Recession 0.2 HPR 42% 23 -17 E(= PCD76) Var(y) = y2 = PO[r(s) E()P SD(r) = q = V 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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