Calculate the expected return of escapist negative values


The common stock of Escapist Films sells for $30 a share and offers the following payoffs next year: Dividend Stock Price Boom 0 $24 Normal economy $1 32 Recession 4 38 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 %

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Finance Basics: Calculate the expected return of escapist negative values
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