Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.3 33% Normal growth 0.3 19 Recession 0.4 15 E(r)=ss=1p(s)r(s) Var(r)2=ss=1p(s)[r(s)E(r)]2 SD(r)=Var(r)

Suppose your expectations regarding the stock market are as follows: E(r)=s=1sp(s)r(s)Var(r)2=s=1sp(s)[r(s)E(r)]2SD(r)=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.)