Saved Help Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession. Probability HPR 0.2 40% 0.3 20 0.5 -17 3 E(r) = P(s)r(s) Var (r) = 0² =Σp(s)[r(s) - E(r)]² 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 5.50% 2.24 % F2 80 F3 a < Prev 1 of 4 Next > F5 MacBook Air F6 & 87 ^ < 6 % ale5 $ #4 #3 62 Q W E R A S D FL & F7 * ∞ ( 8 9 T Y U G H = F9 8: 4 ) O F10 0 P J K L < Z X C V B N M V- > . T H дв T
Saved Help Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession. Probability HPR 0.2 40% 0.3 20 0.5 -17 3 E(r) = P(s)r(s) Var (r) = 0² =Σp(s)[r(s) - E(r)]² 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 5.50% 2.24 % F2 80 F3 a < Prev 1 of 4 Next > F5 MacBook Air F6 & 87 ^ < 6 % ale5 $ #4 #3 62 Q W E R A S D FL & F7 * ∞ ( 8 9 T Y U G H = F9 8: 4 ) O F10 0 P J K L < Z X C V B N M V- > . T H дв T
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose your expectations regarding the stock market are as follows:
State of the Economy
Boom
Normal growth
Recession.
Probability
HPR
0.2
40%
0.3
20
0.5
-17
3
E(r) = P(s)r(s)
Var (r) = 0² =Σp(s)[r(s) - E(r)]²
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
5.50%
2.24 %
F2
80
F3
a
< Prev
1 of 4
Next >
F5
MacBook Air
F6
&
87
^
< 6
%
ale5
$
#4
#3
62
Q
W
E
R
A
S
D
FL
&
F7
* ∞
(
8
9
T
Y
U
G
H
=
F9
8:
4
)
O
F10
0
P
J
K
L
<
Z
X
C
V
B
N
M
V-
>
.
T
H
дв
T](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb2dc15a-a6c5-4046-b8c8-0b70c39fb5e6%2Fb595534a-b2eb-49ff-a72d-87e4dc0247ad%2Foomgf7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Saved
Help
Suppose your expectations regarding the stock market are as follows:
State of the Economy
Boom
Normal growth
Recession.
Probability
HPR
0.2
40%
0.3
20
0.5
-17
3
E(r) = P(s)r(s)
Var (r) = 0² =Σp(s)[r(s) - E(r)]²
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
5.50%
2.24 %
F2
80
F3
a
< Prev
1 of 4
Next >
F5
MacBook Air
F6
&
87
^
< 6
%
ale5
$
#4
#3
62
Q
W
E
R
A
S
D
FL
&
F7
* ∞
(
8
9
T
Y
U
G
H
=
F9
8:
4
)
O
F10
0
P
J
K
L
<
Z
X
C
V
B
N
M
V-
>
.
T
H
дв
T
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