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The common stock of Escapist Films sells for $26 a share and offers the following payoffs next year: The common stock of Escapist Films sells

The common stock of Escapist Films sells for $26 a share and offers the following payoffs next year:

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The common stock of Escapist Films sells for $26 a share and offers the following payoffs next year: Boom Normal economy Recession Probability 0.35 0.4 0.25 Dividend $1 $2 $4 Stock Price $15 $35 $39 Calculate the expected return and standard deviation of Escapist. (Round your answers to 2 decimal places. Use the minus sign for negative numbers if it is necessary.) Expected rate of return Standard deviation The common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following payoffs to investors next year Probability 0.35 0.4 0.25 Dividend Boom Normal economy Recession Stock Price $193 $131 $9 $5 $1 The stock is selling today for $99 Calculate the expected return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita. (Round your answers to 2 decimal places. Use the minus sign for negative numbers if it is necessary.) Expected return of portfolio Standard deviation of portfolio

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