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The stock of Business Adventures sells for $30 a share. Its likely dividend payout and...

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Finance

The stock of Business Adventures sells for $30 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:
Required:
a. Calculate the expected holding-period return and standard deviation of the holding-period return.
All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers
to 2 decimal places.)
Answer is complete and correct.
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 5%.(Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Answer is complete but not entirely correct.
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