Consider the following information on Stocks I and II:

		Rate of Return If State Occurs
	Probability of
State of Economy	State of Economy	Stock I	Stock II
Recession	.40	.03	-.18
Normal	.25	.34	.14
Irrational exuberance	.35	.28	.44

The market risk premium is 11 percent, and the risk-free rate is 6 percent.

1(a)	What is the beta of each stock? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

	Beta
Stock I
Stock II

1(b)	Which stock has the most systematic risk?
	Stock II Stock I

2(a)	What is the standard deviation of each stock? (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

	Standard deviation
Stock I	%
Stock II	%

2(b)	Which one has the most unsystematic risk?
	Stock II Stock I

3.	Which stock is riskier?
	Stock II Stock I