Compute the mean and standard deviation of the holding period returns on stocks.

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.3: Special Probability Density Functions
Problem 43E
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Suppose your expectations regarding the stock price are as detailed in the table below. Compute the mean and standard deviation of the holding period returns on stocks.


State of the Market    Probability Ending Price HPR (including dividends)
Boom 0.23 $140 52.0%
Normal growth 0.24 $110 19.0%  
Recession 0.53 $80 −11.5% 

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