Suppose your expectations regarding the stock price are as follow HPR (including Probability Ending Price dividends 0.20 $ 140 47.5% 0.29 110 13.0 0.51 80 -20.0 State of the Market Boom Normal growth Recession Use the equations E (r) = Ep (s) r(s) and o² = Ep (s) [r(s) - E(r)]² to compute the mean and standard deviation of the HPR on stocks. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Mean Standard deviation % %

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
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Suppose your expectations regarding the stock price are as follows:
State of the
Market
Boom
Normal growth
Recession
HPR
(including
Probability Ending Price dividends
0.20
$ 140
47.5%
0.29
110
13.0
0.51
80
-20.0
Use the equations E (r) = Ep (s) r(s) and o² = Σp (s) [r(s) – E(r)]² to compute the mean and standard deviation of the HPR on
stocks.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Mean
Standard deviation
%
%
Transcribed Image Text:Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession HPR (including Probability Ending Price dividends 0.20 $ 140 47.5% 0.29 110 13.0 0.51 80 -20.0 Use the equations E (r) = Ep (s) r(s) and o² = Σp (s) [r(s) – E(r)]² to compute the mean and standard deviation of the HPR on stocks. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Mean Standard deviation % %
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