Problem $11-15$ Scenario Analysis and Portfolio Risk $($LO$2,3)$

The common stock of Leaning Tower of Pita Inc., a restaurant chain, will generate payoffs to investors next year, which depend on the

state of the economy, as follows:

The company goes out of business if a recession hits. Assume for simplicity that the three possible states of the economy are equally

likely. The stock is selling today for $$80.$

a$-1.$ Calculate the rate of return to Leaning Tower of Pita shareholders for each economic state. $($Negative amounts should be

indicated by a minus sign. Enter your answers as a percent rounded to $2$ decimal places.$)$

a$-2.$ Calculate the expected rate of return and standard deviation of return to Leaning Tower of Pita shareholders. $($Do not round

intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.$)$