Please use with Excel only.

No hand written.

The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-ofyear price depend on the state of the economy by the end of the year as follows: 7. Calculate the expected holding-period return and standard deviation of the holding-period return. The probabilities are 25%,50%, and 25% for boom, normal, and recession, respectively. 8. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on Treasury bills is 4%