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The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year Dividend $ @ Stock Price $ 18
The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year Dividend $ @ Stock Price $ 18 Boom Normal economy Recession 34 The common stock of Leaning Tower of Pita Inc. Is selling for $80 and offers these payoffs next year. Dividend $ Stock Price $240 Boon Normal economy Recession a-1. Calculate the rate of return of Escapist Films for each economic state. (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.) Rate of Return Boom Normal economy Recession 1 % a-2. Calculate the expected return and standard deviation of Escapist if all three economic scenarios are equally likely to occur. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return Standard deviation b-1. Calculate the rate of return of a portfolio half Invested in Escapist and half In Leaning Tower of Pita for each economic state. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations. Enter your answers as a whole percent.) Rate of Retum Boom Normal economy Recession % % b-2. Calculate the expected rate of return and standard deviation of a portfolio half Invested in Escapist and half In Leaning Tower of Pita. All three economic scenarios are equally likely to occur. (Do not round Intermediate calculations. Round "Expected return" answer to the nearest whole percent and "Standard deviation" answer to 2 decimal places.) Expected return Standard deviation
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