Suppose your expectations regarding the stock market are as follows:

State of the Economy Probability HPR

Boom $0\mathrm{.}441\%$

Normal growth $0\mathrm{.}415$

Recession $0\mathrm{.}219$

E$($r$)=$ss$=1$p$($s$)$r$($s$)$

E

r

$=$

$$

s

$=$

$1$

s

p

s

r

s

Var$($r$)\backslash$sigma $2=$ss$=1$p$($s$)[$r$($s$)$E$($r$)]2$

Var

r

$$

$\backslash$sigma

$2$

$=$

$$

s

$=$

$1$

s

p

s

$[$

r

s

$-$

E

r

$]$

$2$

SD$($r$)\backslash$sigma $=$Var$($r$)$

S

D

r

$$

$\backslash$sigma

$=$

Var

r

Required:

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.$)$