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The stock of Business Adventures sells for $25 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by

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The stock of Business Adventures sells for $25 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 Stock Price $1.50 $35 1.10 0.55 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 hatin Business Adventures and half in Treasury bills The return on b is 3 (Do not round Intermediate calculations. Round your answers to 2 decimal places) Expected retum standard deviation

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