The stock of Business Adventures sells for $$40$ 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:

$($

a$.$ Calculate the expected holding$-$period return and standard deviation of the holding$-$period return. All three scenarios are equally

likely.

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 $4\%.$