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Suppose your expectations regarding the stock price are as follows: Suppose your expectations regarding the stock price are as follows: HPR Ending (including State of

Suppose your expectations regarding the stock price are as follows:

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Suppose your expectations regarding the stock price are as follows: HPR Ending (including State of the Market Probability Price dividends) Boom 0. 22 $ 140 49 . 5% Normal growth 0. 21 110 21.5 Recession 0. 57 80 -19.0 Use the equations E (r) = Ep (s) r(s) and o? = Ep (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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