2. The stock of Business Adventures sells for $55 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: (a) Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (b) Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 3%. 3. Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $140,000, with equal probabilities of 0.5 . The alternative riskless investment in T-bills pays 6%. (a) If you require a risk premium of 11%, how much will you be willing to pay for the portfolio