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Suppose your expectations regarding the stock price are as follows: State of the Market HPR (including Probability Ending Price dividends) Boom Normal growth Recession
Suppose your expectations regarding the stock price are as follows: State of the Market HPR (including Probability Ending Price dividends) Boom Normal growth Recession 0.22 0.21 0.57 $ 140 110 49.5% 21.5 80 -19.0 Use the equations E(r) = p (s) r(s) and o = p(s) [r(s) - E(r)] to compute the mean and standard deviation of the HPR on stocks. S S Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Mean Standard deviation % %
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