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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 Boom 0 $22 Normal

The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year:

Dividend Stock Price
Boom 0 $22
Normal economy $1 26
Recession 4 30

All three scenarios are equally likely.

a.

Calculate the expected return of Escapist. (Negative values should be indicated by a minus sign.)

Expected Return
Boom %
Normal economy %
Recession %
b.

Calculate the standard deviation of Escapist. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation %

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