(Solved): Problem 11-15 Scenario Analysis and Portfolio Risk (LO2, 3)The common stock of Leaning Tower of Pita ...

Problem 11-15 Scenario Analysis and Portfolio Risk (LO2, 3)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: Calculate the expected rate of return and standard deviation of a portfolio half invested in Escapist and half in Leaning Tower of Pita. All three economic scenarios are equally likely to occur. (Do not round intermediate calculations. Round your answers to 2 decimal places.