Question: Problem 5-7 Suppose your expectations regarding the stock price are as follows: HPR Ending (including Probability Price dividends) State of the Market Boom Normal growth

Problem 5-7 Suppose your expectations regarding the stock price are as

Problem 5-7 Suppose your expectations regarding the stock price are as follows: HPR Ending (including Probability Price dividends) State of the Market Boom Normal growth Recession 8.25 0.30 0.45 s 140 110 80 545% 16.5 13.0 Use the equations E(r) = (s) r(s) and 2-Sp (s) [r(s)-E(r)]2 to compute the mean and standard deviation of the HPR stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) on Mean Standard deviation

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