You bought a share of Stock B today at $75/share and plan to sell it in a year.You expect to receive a dividend of $2.50/share.Furthermore, you predict that the stock price in one year will vary with the state of the economy. In particular, you expect the following distribution of stock prices in one year:

Economy

Probability

ACME Stock Price

Boom

0.10

$100

Normal growth

0.70

$80

Recession

0.20

$60

The risk free rate is 3%.What is the expected return?What is the return standard deviation?What is the Sharpe Ratio? (2 points)