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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability 0.27 0.21 0.52 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 0.27 0.21 0.52 Ending Price $ 140 110 80 HPR (including dividends) 45.5% 12.0 -21.0 Use the equations E (r) = {p (s) r(s) and o2 = {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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