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	.35	.04	-.20
Normal	.30	.27	.14
Irrational exuberance	.35	.21	.37

The market risk premium is 10 percent, and the risk-free rate is 4 percent.

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

	Beta
Stock I
Stock II

1-b.

Which stock has the most systematic risk?

	Stock I
	Stock II

2-a.	What is the standard deviation of each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

	Standard Deviation
Stock I	%
Stock II	%

2-b.

Which one has the most unsystematic risk?

	Stock I
	Stock II

3.

Which stock is riskier?

	Stock I
	Stock II