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1) The common stock of Marielle Machinery will generate the following payoffs to investors next year: Dividend $9 Boom Normal Recession Stock Price $75 63

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1) The common stock of Marielle Machinery will generate the following payoffs to investors next year: Dividend $9 Boom Normal Recession Stock Price $75 63 51 The common stock of Escapist Films will generate the following payoffs to investors next year: Dividend $3 Stock Price $24 Boom Normal Recession 0 18 Marielle Machinery and Escapist Films stocks are selling today for $60 and $20 a share, respectively. Calculate the expected rate of return and standard deviation of returns for both companies. Then calculate the expected return and standard deviation of a portfolio half invested in Marielle Machinery and half invested in Escapist Films

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