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1. The shares of Leaning Tower of Pita, a restaurant chain, are currently worth 80 and will generate the following payoffs to investors next year.

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1. The shares of Leaning Tower of Pita, a restaurant chain, are currently worth 80 and will generate the following payoffs to investors next year. You can assume each state is equally likely State of the Economy Dividend Share Price Boom 5.00 195 Average 2.00 100 Recession 0 0 a. Calculate the expected return and standard deviation for a new shareholder b. Who is more likely to view the stock as a risk-reducing investment, a bankruptcy lawyer or a casino owner

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