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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.3 Normal growth 0.3 Recession 0.4 HPR 39% 21

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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.3 Normal growth 0.3 Recession 0.4 HPR 39% 21 -18 E(-) = P(G)() Var(-) = 92 = PO[r) E("P SD(Y) = g = 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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