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Suppose your expectations regarding the stock market are as follows:

State of the Economy Probability HPR

Boom 0.3 44%

Normal Growth 0.4 14%

Recession 0.3 -16%

Compute the mean of the HPR on stocks. Your answer should be in percentage points and accurate to the hundredths.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940866

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