7 is B and 8 is E, if you could help me work through the problems.

Use the following information for the next two problems: At this time, a T-bill has a 1.4% rate, the market's expected return is 11%, Stock A has a beta of 1.6, and Stock B has a beta of 0.90. The expected returns for Stocks A and B have the following probability distributions: State of the Economy Probability Stock A Stock B Below average 0.10 -30% -5% A Average 0.40 15 8 Above average 0.50 24 16 1.6 90 1.4% 1.6+ 110% reg return: 14% regverv = 13.3 Which of the following is most TRUE? a. An investor should invest in both Stock A and Stock B since diversification is always best. (b. An investor should only invest in Stock B since its expected return is 0.66 of one percent greater than its required return. c. An investor should only invest in Stock A since its beta is greater than Stock B's beta. d. An investor should only invest in Stock A since its expected return is 4.3% higher than Stock B's expected return. e. An investor should only invest in Stock B since it has less nondiversifiable risk than Stock A. 8 The 99.7 percent confidence interval for Stock A is from: a. 10.14%