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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability HPR 0.3 0.4 0.3 44% 14

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Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability HPR 0.3 0.4 0.3 44% 14 -16 E(r)- p(s) r(s) 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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