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Suppose your expectations regarding the stock market are as follows: Probability HPR 44% 0.3 State of the Economy Boom Normal growth Recession Normal growth 0.4
Suppose your expectations regarding the stock market are as follows: Probability HPR 44% 0.3 State of the Economy Boom Normal growth Recession Normal growth 0.4 0.3 o da 14 -16 E() = PORG S1 Var() = g? = PW[PCS) E(-)P SD (r) = y = V Var (v) 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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