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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

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 .25 .03 .32
Normal .50 .23 .12
Irrational exuberance .25 .07 .52

The market risk premium is 6 percent, and the risk-free rate is 2 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 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".

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