Exe.Risk&Return.7.3
Exe.Risk&Return.7.3
Completion requirements
Opened: Sunday, 17 November 2019, 12:00 AM
Due: Sunday, 24 November 2019, 12:00 AM
QUESTION 16:
The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year:
|
|
Dividend |
Stock price |
|
Boom |
0 |
$18 |
|
Normal economy |
$1 |
26 |
|
Recession |
3 |
34 |
a./Calculate ER, SD?
b./Calculate ER, SD of a portfolio half invested in Escapist and half in Leaning Tower of Pita (from question 14)?