Question: THW Saved Help Save & Exit Su Check my w The common stock of Leaning Tower of Pita Inc., a restaurant chain, will generate payoffs
THW Saved Help Save & Exit Su Check my w 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: Stock Dividend Price $A $240 490 Boom Normal economy Recession 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. 3ook 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.) Print Rate of return erences Boom Normal economy Recession % 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) Expected return Standard deviation
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