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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom Normal growth Recession 0.3 0.4 0.3 HPR 428 15

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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom Normal growth Recession 0.3 0.4 0.3 HPR 428 15 -18 E() = P() () n) Var(r) =q2 = PO[r(s) - E(1) SD(-) = 0 = V Var() 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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