Question
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.2 37% Normal growth 0.6 22 Recession 0.2
| Suppose your expectations regarding the stock market are as follows: |
| State of the Economy | Probability | HPR | |
| Boom | 0.2 | 37% | |
| Normal growth | 0.6 | 22 | |
| Recession | 0.2 | 20 | |
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| 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.) |
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| Mean | % |
| Standard deviation | % |
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
