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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 0.23 $ 140 52.0
Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.23 $ 140 52.0 % Normal growth 0.24 110 19.0 Recession 0.53 80 11.5 Use the equations E(r)=sp(s)r(s) and 2=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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