Question
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.3 44% Normal Growth 0.4 14% Recession 0.3
Suppose your expectations regarding the stock market are as follows:
State of the Economy Probability HPR
Boom 0.3 44%
Normal Growth 0.4 14%
Recession 0.3 -16%
Compute the mean of the HPR on stocks. Your answer should be in percentage points and accurate to the hundredths. For example, if your answer is 0.05422 (or 5.422%), you should type in 5.42.
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
