Consider the following information on stocks I and II:

state of economy	probablility of state of economy	rate of return stock 1	rate of return stock 2
recession	.06	.15	-.35
normal	.69	.35	.35
irrational exuberance	.25	.43	.45

The market risk premium is 8 percent, and the risk-free rate is 3.6 percent. The beta of stock I is _____ and the beta of stock II is _____.

A) 2.08; 2.47

B) 2.08; 2.76

C) 3.21; 3.84

D) 4.47; 3.89

E) 4.03; 3.71