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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.4 Normal growth 0.4 Recession 0.2 HPR 41% 15

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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.4 Normal growth 0.4 Recession 0.2 HPR 41% 15 -19 E(P) = P(6)76) S=1 Var(s) = 2 = PW[PC) E(-)P S=1 SD() = = VVar(r) 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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