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

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4 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: points Dividend Stock Price $2.80 $38 Boom Normal economy Recession 1.60 32 eBook 0.80 16 References 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.) Expected return Standard deviation 1.33% 33.50% 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%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Standard deviation 2.67% %

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