Consider the following information on stocks I and II: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock I Stock II Recession 0.10 0.00 -0.10 Normal 0.70 0.25 0.10 Irrational exuberance 0.20 0.40 0.30 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.	2.74; 1.05
	B.	3.08; 1.47
	C.	3.08; 1.05
	D.	2.74; 1.47