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suppose your expectations regarding the stock price and holding period return ( hpr ) are as follows: boom 0 . 2 probability, $ 6 0

suppose your expectations regarding the stock price and holding period return (hpr) are as follows: boom 0.2 probability, $60 end price, 38.6% hpr, normal growth 0.5 probability, $50 end price, 13.2% hpr, recession 0.3 probability, $30 end price, -18.4% hpr. compute the mean and standard deviation of the hpr on the stock. also what is the real return on the stock if the inflation rate is 2.9%.

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