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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 Probability Dividend Stock Price

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 0.35 $9 $192 Normal economy 0.55 $5 119 Recession 0.1 0 0

The company goes out of business if a recession hits. Calculate the expected rate of return and standard deviation of the return to Leaning Tower of Pita Shareholder. The stock is selling for $98.

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