The stock of Business Adventures sells for $50 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: Dividend Stock Price Boom $3.00 $60 Normal economy 1.20 58 Recession 0.75 49 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.)

Holding period return = 14.49%, Standard Deviation = 11.08 approx

Explanation:

Eco Scenario    Dividend     Stock Price  HPR    Prob     Expected HPR

Boom                         3                 60         26        0.33        8.58

Normal                       1.2               58        18.4       0.33       6.072

Recession                  0.75            49        (0.5)      0.33       (0.165)

              Expected HPR                                                       14.49%

Calculation Of Standard Deviation

                                      (A)                     (B)           (A) - (B)  

                      Given return   Exp return       d          p          

60        50      3            26                     14.49         11.51       0.33      43.718    

58        50      1.2          18.4                   14.49         3.91       0.33      5.045

49        50      0.75      (0.5)                    14.49        14.99     0.33       74.15

                                                                                         Total =  122.91

wherein, d = deviation

               p = probability

               Standard Deviation =  = = 11.08  

Working Note:

Holding period return =

Boom =   = 26%

Similarly, for normal =  = 18.4%

Recession =  = (0.5)%

figure in bracket indicates negative return

the answer is 10c + 6b = 32

step-by-step explanation:

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it