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Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.27 $ 140 45.5

Suppose your expectations regarding the stock price are as follows:

State of the Market Probability Ending Price HPR (including dividends)
Boom 0.27 $ 140 45.5 %
Normal growth 0.21 110 12.0
Recession 0.52 80 21.0

Use the equations E(r)=sp(s)r(s)E(r)=sp(s)r(s) and 2=sp(s)[r(s)E(r)]22=sp(s)[r(s)E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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