Consider the following information on Stocks I and II:

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock I	Stock II
Recession	0.20	0.05	-0.19
Normal	0.30	0.26	0.14
Irrational exuberance	0.50	0.20	0.36

The market risk premium is 9 percent and the risk-free rate is 4 percent.

a-1. What is the beta of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Beta
Stock I	not attempted
Stock II	not attempted

a-2. Which stock has the most systematic risk?

b-1. What is the standard deviation of each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

	Standard Deviation
Stock I	not attempted	%
Stock II	not attempted	%