Consider the following information about Stocks I and II: State of Economy Recession Normal Irrational exuberance Probability of State of Economy .15 .70 .15 Rate of Return of State Occurs Stock Stock II .03 -23 .20 .09 .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 deviation on Stock Il's return is stock's systematic risk beta, Stock percent, and the Stock I beta is percent, and the Stock Il beta is is riskier The standard Therefore, based on the