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Suppose your expectations regarding the stock market are as follows: Probability 0.3 State of the Economy HPR Boom Normal growth Recession 0.4 14 0.3 -16

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Suppose your expectations regarding the stock market are as follows: Probability 0.3 State of the Economy HPR Boom Normal growth Recession 0.4 14 0.3 -16 )-)ro s=1 Var(r) = o? = E p()[r(6) E(r)F S=1 VVar(r) SD(r) = o = 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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