Consider the following information about Stocks I and II:

				Rate of Return if State Occurs
State of	Probability of
Economy	State of Economy			Stock I			Stock II
Recession		.28			.05			.20
Normal		.53			.17			.07
Irrational exuberance		.19			.06			.40

The market risk premium is 8 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 and round your beta answers to 2 decimal places, e.g., 32.16.)

The standard deviation on Stock I's expected return is percent, and the Stock I beta is . The standard deviation on Stock II's expected return is percent, and the Stock II beta is . Therefore, based on the stock's systematic risk/beta, Stock

is "riskier".