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[14 Points] Consider the following information on Stocks A and B: State of Economy Probability of Rate of Return if State Occurs State of Economy

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[14 Points] Consider the following information on Stocks A and B: State of Economy Probability of Rate of Return if State Occurs State of Economy Stock A Stock B Recession 0.60 5% -10% Boom 0.40 20% 30% The market expected return is 10%, and the risk-free rate is 4%. 1) Which stock has more systematic risk? Use the calculation to support your answer. 2) Which stock has more total risk? Use the calculation to support your

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