The common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following payoffs to investors next year: Scenario Return Boom 125% Normal 37% Recession 88% Assuming each scenario is equally likely ( 1/3 probability), what is their expected return? In which of the following situations would you get the largest reduction in risk by spreading your portfolio across two stocks? The stock returns vary with each other. The stock returns are independent. The stock returns vary against each other