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		.15			.03				.23
Normal		.70			.20				.09
Irrational exuberance		.15			.08				.43

The market risk premium is 7 percent, and the risk-free rate is 3.5 percent. (Round your 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			. 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.