Steven Harper is considering ABC Limited and XYZ Inc. for investment of $200,000. Given the following information: State of ABC XYZ Probability Rate of Return Economy Boom Rate of Return 35% 0.30 60% Normal 0.50 20% 0% Bust 0.20 10% 40% Beta 1.8 2.15 Expected T-bill rate of return = 4.5% Assume equilibrium, i.e. expected return = required return a. What is the expected rate of return and standard deviation for ABC? and XYZ? b. What is the expected rate of return, and standard deviation, and Beta for the portfolio if Steven's investment in XYZ is 50% more than his investment in ABC? c. Given the answers to a and b, Steven should invest in ABC? or in XYZ? or in the portfolio consisting of ABC and XYZ? (Hint: It will be useful to find the coefficients of variation)