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Consider the following information about Stocks 1 and 2 : The market risk premium is 7 . 5 percent, and the risk - free rate

Consider the following information about Stocks 1 and 2:
The market risk premium is 7.5 percent, and the risk-free rate is 4 percent.
(1) Which stock has the most systematic risk? (Please enter either 1 or 2)
Stock
(2) Which one has the most unsystematic risk? (Please enter either 1 or 2)
Stock
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