Question 5 8 pts Given the following information, which statement is correct? Standard deviation of stock A is 22%. Standard deviation of stock B is 14%. The expected return of A is 18% while the expected return of B is 10%. Risk-free rate is 3%. Market risk premium is 6%. A is more risky because of its higher standard deviation relative to the risk-free rate. Bis less risky when you compare its returns to the market risk premium. Bis more risky on the basis of relative risk. A is more risky because it has higher relative risk. 8 pts Question 6 The Capital Asset Pricing Model shows the relation between the required return and the risk as measured by beta. expected return as a function of diversifiable risk of a security. relation between required return and total risk of a security. relation between the expected return and correlation of a security