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Homework answers / question archive / Suppose your expectations regarding the stock price are as follows: Compute the mean and standard deviation of the HPR on stocks
Suppose your expectations regarding the stock price are as follows: Compute the mean and standard deviation of the HPR on stocks.
State of the Market Probability Ending Price HPR (including dividends) Boom 0.35 $140 44.5% Normal growth 0.30 110 14.0 Recession 0.35 80 —16.5