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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability @.3e Ending Price $ 140 110

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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability @.3e Ending Price $ 140 110 se HPR (including dividends) 55.5% 15.5 8.48 Use the equations E (r) = Ep (8) r(s) and o2 = Ep (s) [r(s) - EC:)) to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) % Moon Standard deviation %

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