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Suppose your expectations regarding the stock market are as follows; State of the Economy Probability Hpr Boom 0.3 44% Normal Growth 0.4 14 Recession 0.3
Suppose your expectations regarding the stock market are as follows; State of the Economy Probability Hpr Boom 0.3 44% Normal Growth 0.4 14 Recession 0.3 -16 Use equations 5.6 - 5.8 to compute the mean and standard deviation of the HPR stocks. I am not sure if I am doing this right and need help 0.3*44% + 0.4*14% + 0.3*(-16%) = 14% Now where does the equations 5.6 - 5.8 go
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