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 $\mathrm{.}40\mathrm{.}04-\mathrm{.}22$

Normal $\mathrm{.}30\mathrm{.}29\mathrm{.}14$

Irrational exuberance $\mathrm{.}30\mathrm{.}23\mathrm{.}39$

The market risk premium is $12$ percent, and the risk$-$free rate is $4$ percent.

$1$

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 $0$ Numeric ResponseEdit Unavailable. $0$ incorrect.

Stock II $2\mathrm{.}08$ Numeric ResponseEdit Unavailable. $2\mathrm{.}08$ incorrect.

$2$

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 $0\mathrm{.}085$ Numeric ResponseEdit Unavailable. $0\mathrm{.}085$ incorrect.$\%$

Stock II $0\mathrm{.}192$ Numeric ResponseEdit Unavailable. $0\mathrm{.}192$ incorrect.$\%$