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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.2 Normal growth 0.5 Recession 0.3 HPR 378 17

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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.2 Normal growth 0.5 Recession 0.3 HPR 378 17 - 11 S E(r) = P(s) r(s) 1 s Var(r) = g? = p(s)[r(s) - E(r)] 1 SD(r) = = 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 fo 2 decimal places.) Mean % Standard deviation

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