Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Ending Probability Price 0.29 $ 140 0.22 110 0.49 80 HPR (including dividends) 51.5% 19.5 -18.0 Use the equations E(r) = Ep (s) r(s) and o2 = Ep (8) [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.) Mean Standard deviation % % The continuously compounded annual return on a stock is normally distributed with a mean of 26% and standard deviation of 30%. With 95.45% confidence, we should expect its actual return in any particular year to be between which pair of values? Hint Refer to Figure 5.3. 0 -34.0% and 86.0% -24.0% and 86.0% -26.8% and 78.8% -13.5% and 68.6%