In: Finance
Suppose your expectations regarding the stock market are as follows:
State of the Economy | Probability | HPR | |
Boom | 20% | 15% | |
Normal growth | 50% | 7% | |
Recession | 30% | -10% | |
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.)
Mean | % |
Standard deviation | % |