The stock of Business Adventures sells for $40 a share. Its likely dividend payout and endofyear price depend on the state of the economy by the end of the year as follows: 
Dividend 
Stock price 

Boom 
$2.00 
$54 
Normal economy 
1.20 
48 
Recession 
.95 
39 
a.  Calculate the expected holdingperiod return and standard deviation of the holdingperiod return. All three scenarios are equally 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 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 