Suppose your expectations regarding the stock market are as follows:

State of the Economy Probability HPR

Boom 0.4 38%

Normal growth 0.3 21

Recession 0.3 19

E(r)=ss=1p(s)r(s)

Var(r)2=ss=1p(s)[r(s)E(r)]2

SD(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.)

Mean %

Standard Deviation %