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

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Suppose your expectations regarding the stock market are as follows: 0.3 State of the Economy Probability Boom Normal growth 0.3 Recession 0.4 HPR 33% 19 -15 E(T) = p(s)r(s) S=1 Var(r) = o2 = P()[r(s) E(r)]? SD(r) = 0 = o=VVar(Y) 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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