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The stock of Business Adventures sells for $35 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 $35 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend ($) Stock Price (5) Boom 1.2 Normal Economy 1.2 Recession 0.6 45 38 26 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.) Mean Standard Deviation % % 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 4% (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean Standard Deviation % %

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