Question
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 20% 15% Normal growth 50% 7% Recession 30%
Suppose your expectations regarding the stock market are as follows:
| State of the Economy | Probability | HPR | |
| Boom | 20% | 15% | |
| Normal growth | 50% | 7% | |
| Recession | 30% | -10% | |
|
| |||
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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Personal Finance
Authors: Jack R Kapoor, Glencoe McGraw Hill, Les R Dlabay, Robert J Hughes
1st Edition
0078698006, 9780078698002
