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The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year: Probability Dividend Stock Price Boom 0.3 $0

The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year:

Probability Dividend Stock Price
Boom 0.3 $0 $23
Normal economy 0.5 3 31
Recession 0.2 8 39

Calculate the expected return and standard deviation of Escapist. (Do not round your intermediate calculations and round your final 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 Dividend Stock Price
Boom 0.3 $5 $200
Normal economy 0.5 3 105
Recession 0.2 0 0

The stock is selling today for $95.

Calculate the expected return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita. (Do not round your intermediate calculations and round your final 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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