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Consider the following information about Stocks I and II: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock I
Consider the following information about Stocks I and II:
State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock I Stock II
Recession
Normal
Irrational exuberance
The market risk premium is percent, and the riskfree rate is percent. Do not round intermediate calculations. Enter your standard deviation answers as a percent rounded to decimal places, eg Round your beta answers to decimal places, eg
Beta of stock I and II:
Standart deviation of stock I and II:
Which one is riskier:
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