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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability 0.3 0.3 0.4 HPR 33% 19

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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability 0.3 0.3 0.4 HPR 33% 19 -15 E (r) = {S=1P(s)r (s) Var (r) = o? = '$_1 P(s)[r (s) E (r)]? SD (n) = 0 = 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 %

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