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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR 40% Boom 0.2 Normal growth 0.3 20 0.5 -17

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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR 40% Boom 0.2 Normal growth 0.3 20 0.5 -17 Recession E()-)r) pr) EP Var)2 SD() VVar() 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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