The stock of Business Adventures sells for $25 a share. Its likely dividend payout and end-of-year...

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Finance

The stock of Business Adventures sells for $25 a share. Itslikely dividend payout and end-of-year price depend on the state ofthe economy by the end of the year as follows:

Dividend Stock price
  Boom $1.50     $35
  Normal economy 1.10     30
  Recession .55     21
a.
Calculate the expected holding-period return and standarddeviation of the holding-period return. All three scenarios areequally likely. (Do not round intermediate calculations.Round your answers to 2 decimal places.)
  Expected return %
  Standard deviation %
b.
Calculate the expected return and standard deviation of aportfolio invested half in Business Adventures and half in Treasurybills. The return on bills is 3%. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)
  Expected return %
  Standard deviation %

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The stock of Business Adventures sells for $25 a share. Itslikely dividend payout and end-of-year price depend on the state ofthe economy by the end of the year as follows: DividendStock price Boom$1.50 $35 Normal economy1.10 30 Recession.55 21 a.Calculate the expected holding-period return and standarddeviation of the holding-period return. All three scenarios areequally likely. (Do not round intermediate calculations.Round your answers to 2 decimal places.) Expected return% Standard deviation%b.Calculate the expected return and standard deviation of aportfolio invested half in Business Adventures and half in Treasurybills. The return on bills is 3%. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.) Expected return% Standard deviation%

	Dividend	Stock price
Boom	$1.50	$35
Normal economy	1.10	30
Recession	.55	21