1. Calculate the expected holding-period return and standard deviation of the holding period return. All three scenarios are equally likely.

• The stock of Business Adventurers sells for $30 a share. It likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows.

Dividend	Stock Price
Boom	$3.20	$52
Normal Growth	2.50	40
Recession	0.00	27

1. a.Calculatetheexpectedholding-periodreturnandstandarddeviationoftheholdingperiodreturn.Allthreescenariosareequallylikely.Answer: E(HPR)=0.385567, Var(HPR) = 0.1478, SD(r)=38.4%
2. b.CalculatetheexpectedreturnandstandarddeviationaportfolioinvestedhalfinBusinessAdventuresandhalfinTreasurybills.Thereturnonbillsis4%.
3. Answer: E(r) = 21.3%, SD = 19.2%

1. c.Whatisthecompleteportfolios99%confidenceintervalbasedonyourcalculationfromb?

Can you help me to do this question? You can also do and check my answers from question a and b as well if you have time. Thank you!