State of the Economy Probability HPR Boom 0.3 41% ...

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Accounting

State of the Economy Probability HPR
Boom 0.3 41%
Normal growth 0.6 24
Recession 0.1 18

E(r)=ss=1p(s)r(s)Er=s=1spsrs

Var(r)2=ss=1p(s)[r(s)E(r)]2Varr2=s=1sps[rs-Er]2

SD(r)=Var(r)SDr=Varr

Required:

Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

what is

A) mean

B)Standard deviation

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