Consider the following information about Stocks I and II Rat

Consider the following information about Stocks I and II: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock I Stock II Recession .30 .08 .27 Normal .45 .19 .14 Irrational exuberance .25 .13 .47 The market risk premium is 8 percent, and the risk-free rate is 6 percent. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Enter your return answers as a percent. ) The standard deviation on Stock I\'s return is percent, and the Stock I beta is . The standard deviation on Stock II\'s return is percent, and the Stock II beta is . Therefore, based on the stock\'s systematic risk/beta, Stock is \"riskier\".

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