(SOLVED) The common stock of Escapist Films sells for 25 a


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$19

The common stock of Escapist Films sells for $25 a share and offers the following payoffs next year:
Calculate the expected return and standard deviation of Escapist. Then calculate the expected return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita. Show that the portfolio standard deviation is lower than either stock’s. Explain why this happens.

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$19