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Suppose your expectations regarding the stock market as follows: State of the economy Probability HPR Boom 0.3 44% Normal Growth 0.4 14 Recession 0.3 -16
Suppose your expectations regarding the stock market as follows:
State of the economy | Probability | HPR |
Boom | 0.3 | 44% |
Normal Growth | 0.4 | 14 |
Recession | 0.3 | -16 |
Compute the mean and standard deviation of the HPR on stocks.
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