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Problem 5-6 (Algo) The stock of Business Adventures sells for $70 a share. Its likely dividend payout and end-of-year price depend on the state of

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Problem 5-6 (Algo) The stock of Business Adventures sells for $70 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: Boon Normal economy Recession Dividend $ 2.50 1.50 0.50 Stock Price $78 72 66 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.) Expected return Standard deviation 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 3%. (Do not round Intermediate calculations, Round your answers to 2 decimal places.) Expected return Standard deviation

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