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.