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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability 0.20 0.22 0.58 Ending Price $140

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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability 0.20 0.22 0.58 Ending Price $140 110 80 HPR (including dividends) 50.5% 20.5 -18.5 Use Equations E (r) = {p(s) r(s), o2 = Ep (s) [r(s) E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Enter your answers as decimals rounded to 2 places.) s Mean Standard deviation 1%

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