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The stock of Business Adventures sels for 540 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by
The stock of Business Adventures sels for 540 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 $2.00 1.00 .50 Stock Price $50 43 34 Calculate the standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. All three scenarios are equally likely. The return on bills is 4%. (Do NOT enter % sign. If your answer is 0.0678 or 6.78% enter only 6.78. Round your answer to 2 decimal places.)
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