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The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year: Dividend Stock Price 0 $24 Boom Normal
The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year: Dividend Stock Price 0 $24 Boom Normal economy Recession $2 31 4 35 All three scenarios are equally likely. a. Calculate the expected return of Escapist. (Negative values should be indicated by a minus sign.) Boom Normal economy Recession Expected Return % % % 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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