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

s
E(r)=∑ p(s)r(s)
s=1

s
Var(r)≡σ^2=∑ p(s)r(s)
s=1

SD(r)≡σ=√Var(r)

Required:
Use the above equations to compute the mean and standard deviation of the HPR on stocks.

Which of the following government agencies is responsible for managing the money supply in the united states? a. the u. s. mint b. the federal reserve bank c. congress d. the department of the treasury 2b2t

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Indicate whether each of the following companies is primarily a service, merchandise, or manufacturing business. if you are unfamiliar with the company, use the internet to locate the company's home page or use the finance web site of yahoo. 1. alcoa inc. 2. boeing 3. caterpillar 4. citigroup inc. 5. cvs 6. dow chemical company 7. ebay inc. 8. fedex 9. ford motor company 10. gap inc. 11. h& r block 12. hilton hospitality, inc. 13. procter & gamble 14. suntrust 15. walmart stores, inc.