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Suppose your expectations regarding the stock market are as follows: State of Economy Probability HPR Boom 0.4 38% Normal Growth 0.5 17 Recession 0.1 -10
Suppose your expectations regarding the stock market are as follows:
State of Economy | Probability | HPR |
Boom | 0.4 | 38% |
Normal Growth | 0.5 | 17 |
Recession | 0.1 | -10 |
Picture 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 22.9%
Standard deviation ____%??
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