Consider the following information about Stocks A and B: State of Economy Probability Rate of Return of State for Stock A (p.a.) 0.15 0.03 Rate of return for Stock B (p.a.) Recession -0.23 Normal 0.70 0.2 0.09 Optimistic 0.15 0.08 0.43 The risk-free rate is 3.5% p.a. and the market risk premium is 7% p.a. (a) What are the expected returns of both stocks? [2 marks] (b) Which stock has the most systematic risk? [2 marks] (c) Which stock has the most total risk? (5 marks] (d) Which stock has the most unique risk? [1 mark] (e) Which stock is 'riskier' to an investor who holds the stocks as part of a diversified portfolio? [2 marks)