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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 | .20 | .02 | -.20 |
| Normal | .55 | .32 | .12 |
| Irrational exuberance | .25 | .18 | .40 |
The market risk premium is 7 percent, and the risk-free rate is 4 percent.
Calculate the standard deviation of Stock I and Stock II (Do not round intermediate calculations. Enter the standard deviation as a percentage. Round your answers to 2 decimal places)
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