return rates

[loyce t.]

The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year:

	Dividend	Stock Price
Boom	0	$21
Normal economy	$1	32
Recession	3	36

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

%

 

[Deleted member 4993]

The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year:

	Dividend	Stock Price
Boom	0	$21
Normal economy	$1	32
Recession	3	36

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

%

Looks like take-home exam to me...

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