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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability 0.23 0.24 0.53 Ending Price $
Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession Probability 0.23 0.24 0.53 Ending Price $ 140 110 80 HPR (including dividends) 52.0% 19.0 -11.5 Use the equations E (r) = Ep (s) r(s) and o2 = 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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