Suppose your expectations regarding the stock price are as follows: HPR (including dividends) State of the Market Boom Normal growth Recession Probability Ending Price 0.35 0.30 0.35 Mean Standard deviation 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 S S on stocks. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. do do $ 140 110 80 % 44.5% 14.0 -16.5 %
Suppose your expectations regarding the stock price are as follows: HPR (including dividends) State of the Market Boom Normal growth Recession Probability Ending Price 0.35 0.30 0.35 Mean Standard deviation 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 S S on stocks. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. do do $ 140 110 80 % 44.5% 14.0 -16.5 %
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
Related questions
Question
![Suppose your expectations regarding the stock price are as follows:
HPR (including
dividends)
State of the Market
Boom
Normal growth
Recession
Probability Ending Price
0.35
0.30
0.35
Mean
Standard deviation
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
S
S
on stocks.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
do do
$ 140
110
80
%
44.5%
14.0
-16.5
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d1cf30c-4637-495e-bfcc-cc21d27ad7a5%2Ffb3b5ab9-7f63-44ea-92ae-46fa8df3c549%2Fcmo7en7_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose your expectations regarding the stock price are as follows:
HPR (including
dividends)
State of the Market
Boom
Normal growth
Recession
Probability Ending Price
0.35
0.30
0.35
Mean
Standard deviation
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
S
S
on stocks.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
do do
$ 140
110
80
%
44.5%
14.0
-16.5
%
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