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: (Note: All three scenarios are equally likely.)

	Dividend	Stock price
Boom	$ 2.00	$ 50
Normal economy	1.00	43
Recession	.50	34

Required:

(a)	Calculate the expected holding-period return and standard deviation of the holding-period return. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

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 4%. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Expected return	%
Standard deviation	%