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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0 . 2 3 4 % Normal growth

Suppose your expectations regarding the stock market are as follows:
State of the Economy Probability HPR
Boom 0.234%
Normal growth 0.319
Recession 0.514
E(r)=ss=1p(s)r(s)
Var(r)\sigma 2=ss=1p(s)[r(s)E(r)]2
SD(r)\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.)

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