Consider 3 stocks. Over a certain period of time, their betas and standard deviations of returns were the following: i i Vladivostok Far Away Fish 2.46 34.6% NES Ninjas 0.84 28.6% Chelyabinsk Ladies Club 1.45 20.3% The risk-free rate of interest is 4%. Market risk premium is 8%. The standard deviation of the market portfolio is 20%. a) Which stock is the safest for a diversified investor? b) Which stock is the safest for an undiversified investor who puts all of her funds in one of these stocks? c) Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? d) Consider a well-diversified portfolio made up of stocks with the same beta as Vladivostok Far Away Fish (too far away). What are the beta and standard deviation of this portfolio's return? e) What is the expected rate of return on each stock (use the CAPM model)