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	.20	.03	-.22
Normal	.30	.38	.14
Irrational exuberance	.50	.32	.48

The market risk premium is 9 percent and the risk-free rate is 4.5 percent.

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

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.)

b-2. Which one has the most unsystematic risk?

c. Which stock is riskier?