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Please help me with this 2 question! 10. 1000 points value: The stock of Business Adventures sells for $35 a share. Its likely dividend payout
Please help me with this 2 question!
10. 1000 points value: The stock of Business Adventures sells for $35 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 Boom Normal economy Recession Dividend $1.20 1.20 60 Stock Price $45 38 26 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Standard deviation 6.66 2% 45.42 % 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%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Standard deviation 5.33 % 3.77 %Step by Step Solution
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