NHF Bid to aquire SLF for $140 per share. Current price is $120 per share. The deal is expected to close in 6 months. Probability of success is 70% probability of failure is 30%. If deal fails SLF stock will fall to $90 per share. Over this period SLF will pay $12 in dividends. Risk free rate is zero.

A) Compute HPR for success and failure.

B) Compute expected return for buying and holding SLF stock for 6 months

C) Compute expected volatility for buying and holding SLF stock for 6 months

D) Compute annualized expected returns and annualized expected volatility for this position. Hint annualize your answers from B & C