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Consider the following information about Stocks I and II: table [ [ State of Economy, table [ [ Probability of State of -

Consider the following information about Stocks I and II:
\table[[State of Economy,\table[[Probability of State of-],[Economy]],\table[[Rate of Return if State],[Occurs]]],[Stock I,Stock II],[Recession,.30,.05,-.30],[,.45,.22,.10],[Irrational exuberance,.25,.05,.50]]
The market risk premium is 6 percent, and the risk-free rate is 2 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 beta answers to 2 decimal places, e.g.,32.16.)
\table[[The standard deviation on Stock I's return is,17.01 percent, and the Stock I beta is,6.53. The standard],[deviation on Stock II's return is,,percent, and the Stock II beta is,Therefore, based on the],[stock's systematic risk/beta, Stock,,is "niskier",]]
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