Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom

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Suppose your expectations regarding the stock market are as follows:

State of the Economy Probability HPR

Boom 0.3 44%

Normal Growth 0.4 14%

Recession 0.3 -16%

Compute the mean of the HPR on stocks. Your answer should be in percentage points and accurate to the hundredths.

For example, if your answer is 0.05422 (or 5.422%), you should type in 5.42.

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Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

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