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Consider the following information on Stocks I and I State of Economy Probability of State of Economy Rate of Return if State Occurs Stock I

Consider the following information on Stocks I and I
State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock I Stock II
Recession 0.300.050.18
Normal 0.400.190.14
Irrational exuberance 0.300.130.29
The market risk premium is 8 percent and the risk-free rate is 5 percent.
a-1. What is the beta of each stock?
Note: not round intermediate calculations. Round your answers to 2 decimal places.and what is the standard diviation of each stock to the 2nd decimal place?

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