Question
Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.40 $140 46.0% Normal
Suppose your expectations regarding the stock price are as follows:
State of the Market Probability Ending Price HPR (including dividends)
Boom 0.40 $140 46.0%
Normal growth 0.20 110 15.0
Recession 0.40 80 15.5
(Omit the % sign in your response. Do not round intermediate calculations. Enter your answers as decimals rounded to 2 places.)
Mean % ______?
Standard deviation % _______?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
