2- There are two stocks in the market: a) The common price for the first stock is 200 dollars. Five different states are expected: extreme risk with 10%, high risk with 20%, medium risk (or fair) with 30%, low risk with 30%, and safest mode with 10% probabilities. The expected future prices for each state are 300, 260, 225, 180, and 110 dollars, respectively. The expected dividends are 5, 3, 1, -1, and -4 dollars, respectively. Calculate the expected return and standard deviation over all contingencies (4 points). I b) The common price for the second stock is 150 dollars. Five different states are expected: extreme risk with 5%, high risk with 10%, medium risk (or fair) with 50%, low risk with 30%, and safest mode with 5% probabilities. The expected future prices for each state are 225, 185, 170, 145, and 90 dollars, respectively. The expected dividends are 3.5, 2, 1.5, -0.5, and -2 dollars, respectively. Calculate the expected return and standard deviation over all contingencies (4 points). c) Calculate the Sharpe ratio of those two stocks. Which one should one buy? Explain. (3 points)