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Consider the following information about Stocks, and II: Rate of Return If State Occurs Stock State of Economy Recession Normal Irrational exuberance Probability of State
Consider the following information about Stocks, and II: Rate of Return If State Occurs Stock State of Economy Recession Normal Irrational exuberance Probability of State of Economy 26 .50 Stock II -.31 05 .22 24 .05 51 The market risk premium is 5 percent, and the risk-free rate is 3 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 percent, and the Stock I beta is D . The standard deviation on Stock Il's return is percent, and the Stock || beta is 7. Therefore, based on the stock's systematic risk/beta, Stock (Click to select) is "riskier
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