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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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