Scenario Analysis The common stock of leaning tower of PITA Inc a resturant chain will generate the following pay offs to investors next year probability dividend stock price boom 3 55 $105 normal economy 5 2 100 recession 2 0 0 The company goes out of business if a recession hits Calculate the expected rate of return and standard deviation of Return to Leaning Tower of PITA shareholders the stock is selling today for $90

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Scenario Analysis. The common stock of leaning tower of PITA.Inc. a resturant chain will generate the following pay offs to investors next year. probability dividend

Scenario Analysis. The common stock of leaning tower of PITA.Inc. a resturant chain will generate the following pay offs to investors next year.

	probability	dividend	stock price
boom	.3	55	$105
normal economy	.5	2	100
recession	.2	0	0

The company goes out of business if a recession hits. Calculate the expected rate of return and standard deviation of Return to Leaning Tower of PITA shareholders. the stock is selling today for $90.

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