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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 $

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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 the equations E(r) = Ep (s) r(s) and o? = {p(s) [r(s) E(r)] to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean Standard deviation % %

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