Suppose your expectations regarding the stock market are as follows: PROBLEM SETS State of the Economy Probability HPR Boom 0.3 44% Normal growth 0.4 14 Recession 0.3 -16 Final PDF to printer bod35425_ch05_109-146.indd 141 09/30/15 11:00 PM Chapter 5 Risk and Return: Past and Prologue 141 Dividend Stock Price Boom $2.00 $50 Normal economy 1.00 43 Recession 0.50 34 Use Equations 5.105.12 to compute the mean and standard deviation of the HPR on stocks. (LO 5-4)