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The common stock of Marielle Machinery will generate the following payoffs to investors next year: The common stock of Escapist Films will generate the following

The common stock of Marielle Machinery will generate the following payoffs to investors
next year:
The common stock of Escapist Films will generate the following payoffs to investors next year:
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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