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Suppose your expectations regarding the stock price are as follows: State...

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Finance

Suppose your expectations regarding the stock price are as follows:

State of the Market Probability Ending Price HPR (including dividends)
Boom 0.25 $ 140 54.5 %
Normal growth 0.30 110 16.5
Recession 0.45 80 13.0

Use the equations E(r)=sp(s)r(s)E(r)=sp(s)r(s) and 2=sp(s)[r(s)E(r)]22=sp(s)[r(s)E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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