(15 points) You decide that you want to add a bank stock to the investment portfolio you are overseeing. The figures below show plots of monthly rates of return on three banking stocks (vertical axis) versus the rate of return of the market index (horizontal axis). The beta and standard deviation is given beside the plot. The standard deviation represents the standard deviation of the bank stock over the past 60 months. The market index's standard deviation is 6%. a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all their money in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would be the portfolio's beta? d. Consider a well-diversified portfolio composed of stocks with the same beta and standard deviation as JP Morgan Chase Bank. Assume the standard deviation of the market portfolio's return is 6%. What are the beta and the standard deviation of this portfolio's standard deviation? e. Use the capital asset pricing model to estimate the expected return on each stock. The risk-free rate is 5.5%, and the market risk premium is 11%. Zions Bank (vertical axis; monthly) JP Morgan Chase Bank (vertical axis: monthlv) Wells Fargo Bank (vertical axis; monthly)