The stock of Business Adventures sells for $$30$ 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.$)$

Answer is complete and correct.

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.$)$

Answer is complete but not entirely correct.