State of the Mkt Probability Ending price HPR Boom .10 75…
State of the Mkt Probability Ending price HPR Boom .10 75 41.5% Normal .50 55 15.0% Recession .40 25 -20% (10 points)Given the information above, what is the mean and standard deviation of HPR?How does the answer to change if the probability of recession falls to 0.3 and boom rises to 0,2?