Scenario Analysis. The common stock of Escapist Films sells for $$25$ a share and offers the following payoffs next year: $($LO$11-3)357$ Dividend Stock Price $$182634$ Boom S$0$ Normal economy $1$ Recession a$.$ Calculate the expected return and standard deviation of Escapist. All three scenarios are equally likely. b$.$ Now calculate the expected return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita $($from Problem $15).$ Show that the portfolio standard deviation is lower than that of either stock. Explain why this happens.Average Return and Standard Deviation. In a recent five$-$year period, mutual fund manager Diana Sauros produced the following percentage

rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. Calculate $($a$)$ the average return on both

the fund and the index and $($b$)$ the standard deviation of the returns on each. Did Ms$.$ Sauros do better or worse than the market index on these

measures? $($ LO$11-3)$