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The stock of Business Adventurs sells for $40 a share. The likely dividend payout and end of year stock price depend on the state of
The stock of Business Adventurs sells for $40 a share. The likely dividend payout and end of year stock price depend on the state of the economy, and each state is equally likely. Question 1 5pts What is the expected holding period return for Business Adventures? (Give your answer as a decimal and round at 4 decimal places.) What is the standard deviation of the holding period return for Business Adventures? (Give your answer as a decimal and round at 4 decimal places.) An investor allocates 50% to Business Adventures and 50% to Treasuries. The return on the Treasuries is 4%. What is the expected return of the portfolio? (Give your answer as a decimal and round at 4 decimal places.)
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