Sam has $10,000 and is considering investing in two stocks - HSCC and Sixcent. The table below shows the returns of the stocks under different possible scenarios: e) Determine if the two stocks are overpriced or underpriced and which (if any) should be purchased. (4 marks) f) Sixcent is having higher beta while HSCC is having larger standard deviation. Explain why the results of beta and standard deviation can be different even though both of them are measuring risk.

State of Affair Probability HSCC Sixcent Pandemic (long period of lockdown) 0.25 2% 20% Pandemic (short period of lockdown) 0.3 5% 10% No Pandemic 0.45 18% 2% State of Affair Probability HSCC Sixcent Pandemic (long period of lockdown) 0.25 2% 20% Pandemic (short period of lockdown) 0.3 5% 10% No Pandemic 0.45 18% 2%