Question
Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.27 $140 45.5% Normal
Suppose your expectations regarding the stock price are as follows:
| State of the Market | Probability | Ending Price | HPR (including dividends) |
| Boom | 0.27 | $140 | 45.5% |
| Normal growth | 0.21 | 110 | 12.0 |
| Recession | 0.52 | 80 | 21.0 |
Compute the mean and standard deviation of the HPR on stocks. (Omit the % sign in your response. Do not round intermediate calculations. Enter your answers as decimals rounded to 2 places.)
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Personal Finance QuickStart Guide
Authors: Morgen Rochard
1st Edition
1945051019, 978-1945051012
