Ch 13 Assignment instructions help Question 11 (of 11) Save &Exit Submit value: 10.00 points Consider the following information about Stocks I and II Rate of Return If State Occurs State of Probability of State of Economy Recession Normal Irrational exuberance 20 .55 25 Stock I .05 20 .08 Stock II -22 .09 42 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 and the Stock I beta is .00. The standard deviation on Stock Il's return is Therefore, based on the stock's systematic risk/beta, Stock percent percent, and the Stock Il beta is 0.63 is "riskier". References eBook & Resources Learning Objective: 13-03 The systematic risk principle Worksheet Difficulty: Challenge Section: 13.7 The Security Market Line