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		.30			.09			.24
Normal		.45			.16			.11
Irrational exuberance		.25			.10			.44

The market risk premium is 8 percent, and the risk-free rate is 4 percent.

The standard deviation on Stock I's return is			percent, and the Stock I beta is		1.05	. 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	I	is "riskier".

Consider the following information about Stocks I and II: Rate of Return If State Occurs State of Economy Probability of State of Economy .30 Stock II Stock / .09 -.24 .45 .16 Recession Normal Irrational exuberance 11 .25 .44 The market risk premium is 8 percent, and the risk-free rate is 4 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.) The standard deviation on Stock I's return is percent, and the Stock I beta is 1.05. The standard . Therefore, based on the deviation on Stock Il's return is percent, and the Stock II beta is stock's systematic risk/beta, Stock is "riskier