Question: Can someone show me how to answer this question step by step? Thank you so much! Problem 5-5 (Algo) Suppose your expectations regarding the stock

Can someone show me how to answer this question step by step? Thank you so much!

Problem 5-5 (Algo) Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boon 0.4 38% Normal growth 21 Recession 0.3 - 19 0.3 E(r) = P(s)r(s) Var (r) = o? = :_p(8){r (8) - E(r)? SD (r) == Var (r) 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.) % Mean Standard deviation %

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