Problem $5-6($Algo$)$

The stock of Business Adventures sells for $$75$ 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:

Required:

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.$)$

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 $5\%.($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$