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		0.30			0.04		?	0.19
Normal		0.50			0.16			0.06
Irrational exuberance		0.20			0.05			0.39

The market risk premium is 8 percent, and the risk-free rate is 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 (Click to select)III is "riskier".