Consider the following information about Stocks I and Il: Rate of Return If State Occurs State of Economy Recession Normal Irrational Probability of State of Economy 15 70 Stock I 03 20 08 Stock II 23 09 43 15 exuberance 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 II's return is stock's systematic risk/beta, Stock percent, and the Stock I beta is The standard percent, and the Stock II beta is is riskier. Therefore, based on the

Consider the following information about Stocks I and Il: Rate of Return If State Occurs State of Economy Recession Normal Irrational Probability of State of Economy 15 70 Stock I 03 20 08 Stock II 23 09 43 15 exuberance 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 II's return is stock's systematic risk/beta, Stock percent, and the Stock I beta is The standard percent, and the Stock II beta is is riskier. Therefore, based on the