17 Consider the following information on Stocks I and II: 2.96 points State of Economy Recession Normal Irrational exuberance Probability of State of Economy .25 .60 Rate of Return if State Occurs Stock I Stock II .04 -22 22 15 .15 .16 .45 eBook Print o References The market risk premium is 7 percent, and the risk-free rate is 4 percent. a. Calculate the beta of each stock. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. Which stock has the most systematic risk? d. Which one has the most unsystematic risk? e. Which stock is "riskier"? a. Stock I beta Stock Il beta b. Stock I standard deviation Stock Il standard deviation c. More systematic risk d. More unsystematic risk e. "Riskler" stock % % Stock ! Stock Il Stock