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Suppose your expectations regarding the stock market are as follows: HPR 400 State of the Economy Probability Boom 0.2 Normal growth 0.3 Recession 0.5 20

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Suppose your expectations regarding the stock market are as follows: HPR 400 State of the Economy Probability Boom 0.2 Normal growth 0.3 Recession 0.5 20 -17 E() = ($)() ) Var(r) =q? = P(r) - E(r) = 3 [(P SD(r) = 0 = Var (1) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round interm Round your answers to 2 decimal places.) Mean % Standard deviation %

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