please answer 1 and 2 with explainations. please and thank you!

1. (15 Points) Consider the following probability distribution of the stock of Monterrey Hiking Gears, Co.: MBAD 6152 State Probability Return 0.20 20% Expansion Normal 0.40 15% -10% Recession 0.40 (a) Calculate the expected rate of return for the stock. (b) Calculate the standard deviation of the stock. (c) Suppose the risk-free rate is 5%. What is the stock's Sharpe ratio? 2. (15 Points] Andante Co. just paid its dividend of $5 per share. The required rate of return of the stock is 14%. Assume the current stock value is $70, and the dividend is expected to grow at a constant rate forever. (a) Find the growth rate of the dividends. (b) Suppose its ROE (Return on Equity) is 20%. Find the payout ratio of the firm. (e) Find the expected stock price in 3 years from now