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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 0.28 $ 140 53.5

Suppose your expectations regarding the stock price are as follows:

State of the Market Probability Ending Price HPR (including dividends)
Boom 0.28 $ 140 53.5 %
Normal growth 0.23 110 20.0
Recession 0.49 80 17.0

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

MEAN: ? %

Standard Deviation: ? %

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