8 (15%) The stocks ofABC company and XYZ company will generate payoffs to investors next year, which depend on the state of the economy as follows: Dividend of ABCStock Price ofABC Dividend ofXYZ Stock Price of XYZ Boom Normal economy Recession 240 90 18 26 34. 0 4 a) Calculate the expected rate of return and standard deviation of return to ABC company shareholders. Assume for simplicity that the three possible states of the economy are equally likely. The ABC stock is selling today for $80. b) Calculate the expected rate of return and standard deviation of return to XYZ company shareholders. Assume for simplicity that the three possible states of the economy are equally likely. The XYZ stock is selling today for $25 c Calculate the expected return and standard deviation of a portfolio half invested in ABC stock and half invested in XYZ stock