6. The stock of Business Adventures sells for $40 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: (LO 5-2) Dividend Boom $2.00 Normal economy Recession 1.00 0.50 Stock Price $50 43 34 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 4%.