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The common stock of Escapist Films sells for $50 a share and offers the following payoffs next year: Dividend Stock Price Boom 0 $35 Normal

The common stock of Escapist Films sells for $50 a share and offers the following payoffs next year:

Dividend Stock Price
Boom 0 $35
Normal economy $2 52
Recession 4 60

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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