Problem 4 (26 marks): Consider the following information about stocks I and II. Assume both stocks are correctly priced. The market risk premium is 6 percent, and the risk-free rate is 4 percent. a) Compute the beta and standard deviation for each of the two stocks. (20 marks) b) From the perspective of a risk-averse, well-diversified investor, which stock is riskier? Explain. (6 marks)