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The common stock of Escapist Films sells for $40 a share and offers the following payoffs next year: Dividend Stock Price Boom 0 $30 Normal
The common stock of Escapist Films sells for $40 a share and offers the following payoffs next year: Dividend Stock Price Boom 0 $30 Normal economy $2 44 Recession 3 51 -------------------------------------------------------------------------------- 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 25% my answer is wrong Normal economy 15 % my answer is correct Recession 35% my answer is correct -------------------------------------------------------------------------------- b. Calculate the standard deviation of Escapist. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation 8.17 % wrong
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