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Suppose your expectations regarding the stock price and holding period return (HPR) as follows: State of Economy Prob Ending Price HPR Boom $150 50% Normal

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Suppose your expectations regarding the stock price and holding period return (HPR) as follows: State of Economy Prob Ending Price HPR Boom $150 50% Normal Growth $110 15% Recession .2 $80 -20% 6. Compute the mean and standard deviation of the HPR on stocks .2 .6

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