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The common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following payoffs to investors next year: Boom Normal economy
The common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following payoffs to investors next year: Boom Normal economy Recession Probability 0.25 0.6 0.15 Dividend Stock Price $ 5 $ 200 3 0 105 0 The company goes out of business if a recession hits. Calculate the expected rate of return and standard deviation of return to Leaning Tower of Pita share-holders. The stock is selling today for $95. (Round your answers to 2 decimal places.) Expected rate of return g Standard deviation g
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