7 Consider the following information about Stocks I and II: Rate of Return If State Occurs State of Probability of State of Economy Stock Economy Stock 11 Recession 20 .09 - 26 Normal .60 18 .13 Irrational .20 12 46 exuberance The market risk premium is 5 percent, and the risk free rate is 4 percent. (Do not round Intermediate calculations. Enter your standard deviation answers as a percent rounded to 2 decimal places, e... 32.16. Round your bets answers to 2 decimal places, ... 32.16.) The standard deviation on Stock I's retum is deviation on Block's return is stock's systematic riskibeta, Stock percent, and the Stock I bota is perce and the Stockbeta is isriskier The standard Therefore, based on the