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Suppose your expectations regarding the stock market are as follows: State of the EconomyProbabilityHPRBoom0.435%Normal growth0.518Recession0.1-13 Use above equations to compute the mean and standard deviation
Suppose your expectations regarding the stock market are as follows:
State of the EconomyProbabilityHPRBoom0.435%Normal growth0.518Recession0.1-13
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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