Consider the following information about Stocks I and II: 7. Rate of Return If State Occurs State of 5 sints Stock II Probability of State of Economy .26 56 Economy Recession Normal Irrational exuberance Stock 1 .03 .20 - 34 .14 .18 eBook 09 54 Print The market risk premium is 5 percent, and the risk-free rate is 3 percent. (Do not round intermediate calculations. Enter your standard deviation answers as a percent rounded to 2 decimal places, e.g. 32.16. Round your bets answers to 2 decimal ploces, e.g., 32.16.) The standard deviation on Stock I's return is deviation on Stock Il's return is stock's systematic riskbeta, Stock percent and the Stock I betais percent, and the Stockbelas is "risker The standard Therefore, based on the