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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

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 .35 .03 -.23 Normal .30 .39 .14 Irrational exuberance .35 .33 .49 The market risk premium is 10 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.)

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