In: Finance
I'm having trouble figuring out what the standard deviation is for the following problem. Common stock of Escapist Films sells for $30 a share and offers the following payoffs next year: Boom 0 $21 Normal $1 $32 Recession $3 $36 The expected return of Escapist is: Boom -30% Normal 10% Recession 30% Calculate the standard deviation of Escapist.